Impact of US Tariffs on Gold Prices: Global Demand Surge in 2025
Gold Prices Surge Amid US Tariffs and Economic Uncertainty
In February 2025, President Donald Trump imposed a 25% tariff on all steel and aluminum imports to the US, effective March 4, 2025. This move, aimed at protecting domestic industries, has led to significant global economic repercussions and driven investors toward gold as a safe-haven asset.
The uncertainty caused by these tariffs has pushed gold prices to new heights. Spot gold recently reached $2,914.75 per ounce, and Goldman Sachs predicts prices could climb to $3,100 per ounce by year-end, with potential highs of $3,300. This surge is linked to prolonged policy uncertainty. For additional insights, read our article on economic impact.
Global Financial Uncertainty Boosts Gold Prices
The tariffs have sparked varied reactions worldwide. Australian steelmaker BlueScope Steel expects profit boosts from rising US steel prices, while Ukraine’s steel industry faces financial challenges amidst geopolitical tensions. For a better understanding of how geopolitical events impact investments, explore our post on Geopolitical Tensions and Gold.
Investor Behavior and Gold Prices
Global financial instability has led to a surge in demand for gold as investors seek security against economic uncertainty. In January 2025, $3.75 billion was invested in gold ETFs, a sixfold increase from December 2024. This trend highlights gold’s role as a hedge against inflation and market volatility. For investment strategies, check out our guide on Investing in Gold ETFs.
Silver Market Dynamics and Impact on Gold Prices
Similar trends are seen in the silver market, with rising prices driving increased recycling of old jewelry. Despite a projected 5% increase in silver production, demand continues to outpace supply. In the local market, gold prices have reached ₹87,500 per 10 grams, with strong demand for wedding jewelry. Experts predict prices could rise to ₹90,000 per 10 grams soon.
For more on silver’s market influence, visit Silver Market Trends.
With growing demand and decreasing supply, gold prices are expected to continue rising. The ongoing global economic uncertainty is likely to keep investors turning to precious metals as a safe-haven investment.
Stay updated on market movements with our latest Gold Price Predictions.
Gold remains a strong investment choice amid market volatility, and the recent US tariffs have only intensified demand. Stay informed about the latest trends and make smart investment decisions.
At that time, the inflow of Rs 3750 crore into ETFs in January 2025 has broken the record. At that time, the inflow of Rs 640 crore at December 2024 prices was 6 times more than in January, and people preferred to invest in gold ETFs to get security against inflation. This is what mutual fund experts say. This year, gold imports will not decrease and the rate of smuggling will increase, but there is no slowdown in gold prices.
In the local silver market, the price of silver in the world market rose to 3230 cents, and the local price started quoting Rs. 97400 per kg. At that time, the futures price was quoted at Rs. 95700 per kg.
There is a slight difference in consumer demand due to high prices in the showroom. But there is demand due to the wedding season. At that time, investors and traders are trading silver in large quantities and taking advantage of the short-term price correction, they are making profits.
Due to the demand for silver by the industry and jewelry traders, the withdrawal of silver will be high this year and importers will supply the industry and traders by ordering sufficient silver. The income from old silver is completely negligible. And refiners import silver bars, purify the silver and supply it to the market. The process of making hallmarks in silver jewelry has started.
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