Gold has once again made headlines, surging to new record highs of over $2,800/oz. But while the news is great for gold owners, the factors behind gold’s continued rally may signal a good time to reexamine the rest of our portfolios.
Trade tensions over tariffs have spiked.
Global trade relations have grown increasingly volatile in recent weeks. Proposed or implemented tariffs on imports from Canada, China, Mexico, and the European Union have fueled concerns and driven market volatility.
Edmund C. Moy, 38th Director of the U.S. Mint and our Senior IRA Strategist, sees this as a major contributor to gold’s ongoing rally.
“The very real threat of tariffs causing disruption, volatility, and economic uncertainty is making gold prices rise to new historic highs as the demand increases for safe-haven assets,” Moy says.
That demand extends to major world banks. According to Bloomberg, JPMorgan Chase & Co has announced it will be bringing $4 billion worth of gold into New York from London in February 2024. This comes after U.S. depositories held by the world’s largest metals exchange, CME Group’s COMEX, have already received 14 million ounces—or $39 billion worth—of gold since President Trump’s victory on Election Day.
Historically, uncertainty in trade policy often leads to broader financial instability. When markets are faced with the repercussions of unpredictable tariffs, businesses struggle to plan ahead, and consumers bear the cost of rising prices. These ripple effects can weaken confidence in paper-based assets, prompting a shift toward alternatives that are insulated from broader market conditions.
These tensions have sparked a flight to gold.
As concerns over tariffs have grown, demand for gold has spiked. The price of gold rose above $2,800/oz. for the first time on January 30, 2024, soaring as high as $2,875/oz. during intraday trading on February 5.
This price jump is only the latest in a long series of record-breaking moves for gold. The price of gold has rallied to new highs repeatedly over the past year—supported by factors such as geopolitical tensions, changing monetary policy, and financial uncertainty. So while tariffs are the latest factor pushing gold higher, they are not the sole driving force.
I asked Philip N. Diehl, our company president and 35th Director of the U.S. Mint, his opinion on the forces supporting gold. He pointed to geopolitical tensions, in particular, as a major factor pushing prices to new highs despite multiple headwinds.
“Geopolitical conflicts abroad and political uncertainty at home continue to overcome high interest rates and a strong dollar to propel gold toward $3,000 per ounce,” Diehl says.
Gold prices are poised to go higher.
The combination of economic instability surrounding tariffs, ongoing geopolitical tensions, and inflation concerns could push demand and prices for gold further into record-breaking territory in the months ahead.
In fact, analysts expect gold prices to reach $3,000/oz. before the end of 2025. According to Director Diehl, this may be too low of an expectation.
“Not five weeks into the year, we’re already up around $250/oz., with $125/oz. to go to hit the big round number,” Diehl says.
For those watching the markets closely, the recent movement in gold prices is a strong signal—when uncertainty rises, gold is often the asset of choice. This could be just the beginning of gold’s upward trajectory.
