The price of gold has reached a new historical record, surpassing $3,077 per ounce on March 28, 2025. This increase has been driven by a combination of factors, including fears of a global trade war following recent tariffs announced by U.S. President Donald Trump and the growing demand for safe-haven assets in an uncertain economic environment.
What is driving the increase in the price of gold?
Global trade tensions
The reciprocal tariffs announced by Trump have raised concerns about a possible escalation in global trade tensions. Investors fear that these policies may slow economic growth and increase inflation, leading to a rise in demand for gold as a safe-haven asset.
Federal Reserve monetary policy
Although the Federal Reserve has kept interest rates stable in 2025, markets are anticipating further cuts in the second half of the year. A low-rate environment tends to benefit gold, as it reduces the opportunity cost of holding this non-interest-bearing asset.
Central bank demand
Central banks, including the Reserve Bank of India (RBI), have significantly increased their gold reserves. In the first quarter of 2025, the RBI purchased over 32 tons of gold, reflecting a global trend toward diversifying reserves away from the U.S. dollar.
Geopolitical uncertainty
Conflicts in Eastern Europe and tensions in Asia have heightened risk aversion among investors, further boosting demand for gold.
Key data on the price of gold
Record price: $3,077 per ounce (March 28, 2025).
Weekly increase: 1.7%, marking the fourth consecutive week of gains.
Gold futures in the U.S.: Closed at $3,114.30, up 0.8%.
What does this mean for investors?
The rise in the price of gold underscores its role as a safe-haven asset in times of economic and political uncertainty. However, analysts warn that investors should be cautious, as gold could face a correction if trade tensions ease or if the Federal Reserve adopts a more aggressive stance in its monetary policy.
Future outlook
Price projections: Goldman Sachs has raised its forecast for the price of gold to $3,300 per ounce by the end of 2025, citing strong demand from ETFs and central banks.
Factors to watch: The upcoming moves of the Federal Reserve, U.S. trade policies, and the evolution of geopolitical conflicts will be decisive for the price of gold.
Conclusion
The recent increase in the price of gold reflects a global environment marked by uncertainty and the search for safe assets. As markets prepare for upcoming developments in trade and monetary policy, gold continues to solidify as a key option for investors looking to protect their capital.
Do you think gold will continue its upward trend or face a correction in the coming months? Share your thoughts using the hashtag #GoldPricesSoar.
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