Gold Continues to Rise
Gold continues to shine as one of the most sought-after assets in 2025, fueled by geopolitical tensions, economic uncertainty, and the policies of President Donald Trump. The precious metal recently hit $2,786 per ounce, only $30 shy of its all-time high of $2,826 set in October 2024. Market analysts are overwhelmingly bullish, with many predicting gold will soon surpass its historical peak.1
A recent Kitco New Weekly Gold Survey underscores this optimism: 80% of surveyed experts see higher gold prices in the coming weeks. Retail investors are equally confident, with 70% forecasting a rise. According to Kitco Senior Analyst Jim Wyckoff, gold is benefiting from both technical bullishness and heightened risk aversion as the market braces for disruptive policy actions from the Trump camp.2
Economic Nationalism and Tariffs
Trump’s proposed tariffs are a key driver of this momentum. Deutsche Bank estimates these tariffs could push inflation from 2.9% in December to 3.7% by the end of 2025. Such inflationary pressures make gold’s role as a hedge against rising prices increasingly attractive.3
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Marc Chandler, managing director at Bannockburn Global Forex, notes, “New records are likely as the USD corrects lower. Trump’s economic nationalism may also encourage some central banks to accumulate gold.”5
Goldman Sachs analysts echo this sentiment, predicting gold prices could exceed $3,000 per ounce by the end of 2025. The bank highlights the growing demand from central banks looking to diversify reserves away from the U.S. dollar, as well as investor concerns over the $1.83 trillion budget shortfall from the last fiscal year. These deficits, coupled with the Federal Reserve’s potential need to purchase more U.S. Treasury notes, could amplify inflationary pressures, further boosting I have gold demand.
Goldman Sachs also emphasizes gold’s role as a safe-haven asset in times of geopolitical uncertainty. As import costs rise and consumer prices increase, the metal’s traditional position as a hedge against the devalued dollar becomes even more critical. A sustained rise in gold prices during uncertain periods often signals a lack of confidence in fiat currencies like the U.S. dollar Goldman noted.
Trump’s Monetary Policies and Market Impact
Trump’s outspoken stance for pro-growth monetary policy adds another layer of uncertainty. Speaking in Davos, he called for immediate interest rate cuts, saying, “I’ll demand that interest rates drop immediately. And likewise, they should be dropping all over the world.” 6
However, Trump’s push for a direct White House role in monetary policy has alarmed economists, who warn that ending the Federal Reserve’s political independence could lead to spiraling inflation. Ole Hansen, Head of Commodity Strategy at Saxo Bank, explains that this conflicting outlook creates a perfect storm for gold. “With new bullish momentum in gold, $2,800 may only be the beginning. A breakout will likely attract fresh momentum buying,” Hansen said.7
As the Fed debates its next move, markets remain volatile. While some analysts believe the Fed will hold rates steady to stop inflation, others point to slowing U.S. business activity—the slowest in nine months—as a potential catalyst for future rate cuts. Lower borrowing costs and weakening confidence in the U.S. dollar could further bolster gold’s appeal.
Geopolitical Tensions and Global Demand
Trump’s assertive foreign policy and trade tensions are driving investors toward gold as a safe-haven asset. Speculators are already capitalizing on the upward pressure, further pushing prices higher. Central banks worldwide are also increasing their gold reserves to mitigate geopolitical risks and reduce reliance on the U.S. dollar.
Adrian Day, president of Adrian Day Asset Management, observes, “The momentum is certainly with gold, even as North American investors continue to sell. We could see new all-time highs in USD even as gold has already broken out in the currencies of the main buyers, from China to Turkey.”8
Conclusion
Trump is creating the ideal conditions for gold to break record prices. His push for lower interest rates, the looming threat of inflation, and escalating geopolitical tensions are all driving demand for the precious metal. As these factors converge, gold continues to stand out as a safe-haven asset, offering financial security amidst uncertainty. Don’t wait for market changes to erode your savings—protect and grow your wealth with a Gold IRA. Contact American Hartford Gold at 800-462-0071 to learn how you can take advantage of gold’s rise and secure your financial future.
