Global gold prices have reached record levels, becoming the most profitable asset amid the trade policies of U.S. President Donald Trump, according to the Financial Times.
Since the beginning of 2025, the price of gold has risen every week, hitting an all-time high of $2942.70 per troy ounce. Since Trump's inauguration, the value of the precious metal has increased by more than 7%.
Meanwhile, other popular assets, including the U.S. dollar, U.S. Treasury bonds, and bitcoin, are showing weak performance. For instance, the S&P 500 index has gained less than 2%, while the dollar has fallen by 2.4%.
The rise in gold prices is linked to the increasing tensions in global trade. The U.S. President has imposed a 10% tariff on imports from China and is expanding tariffs on all trading partners, including countries in the European Union. This has heightened fears of a global economic downturn and accelerating inflation, which traditionally boosts investment demand for gold.
“When global trade contracts, gold prices shoot up,” explains HSBC analyst James Steel. He notes that a similar situation occurred during the COVID-19 pandemic and the global financial crisis of 2008.
Another contributing factor has been the relocation of large gold reserves from London to the U.S. Since the American presidential elections, gold stocks in New York have increased by 116%, leading to a multi-week queue to withdraw gold from the Bank of England vaults.
Analysts from leading global banks have already begun to adjust their gold price forecasts. UBS and Citigroup have raised their target prices to $3,000 per ounce, citing ongoing market uncertainty.
The demand for gold is also supported by central banks, which continue to purchase the metal in an effort to diversify their reserves. According to the World Gold Council, in 2024, global central banks acquired over 1,000 tons of gold—marking the third consecutive year at such purchasing levels.
Mark Bristow, CEO of Barrick Gold, believes that the chaos in the global economy has strengthened confidence in gold as the only reserve currency that cannot be printed.
In January, Uzbekistan's international assets increased by $1.72 billion, approaching a maximum of $43 billion. The gold reserve set a new record in value, exceeding $35 billion. At the same time, currency reserves significantly decreased, falling below $7.3 billion.
Earlier, Spot reported that gold bar prices have broken records for the tenth time since the beginning of the year.