The price of gold hit a new all-time high Friday, as uncertainty surrounding the ongoing global trade war reached new heights. It triggered what one economist described as a “contemporary gold rush”, with the yellow metal closing the week over $3200 — and potentially on target for $3500 given how erratic the Trump administration has become.
“Everyone is trying to work out what Trump is going to do next”, said Rob Mansfield, Independent Financial Adviser at Rootes Wealth Management. “Gold has a reputation as being a historic store of value so it’s not surprising that people are chasing the price higher.”
Gabriel McKeown, Head of Macroeconomics at Sad Rabbit Newsletter, agreed: “Tariff uncertainties and the resulting geopolitical trade tensions have ignited a contemporary gold rush, with investors flocking to this age-old refuge. Gold’s allure as a safe haven is undeniable, and rocketing past the symbolic $3,200 mark could be the spark that pushes gold prices to the symbolic $3,500 level.”
“Gold smashing through $3,200 is a screaming signal of market fear”, added Tony Redondo, Founder at Cosmos Currency Exchange. “This new record run, up over 8.5% in the past four days, comes as Trump’s trade war with China and a 90-day pause on others drives investors to safe havens. With the Dollar tanking, gold is cheaper to buy for non-USD holders, adding fuel to this safe-haven rally.”
Overheating and profit-taking
But while there is the potential for further appreciation, experts warned the journey is unlikely to be a smooth one. “With a series of unprecedented highs”, said McKeown, “the gold market risks overheating and may face bouts of profit-taking, so investors should brace for short-term fluctuations as gold reaches new heights”.
“Gold’s a hedge, not a golden ticket”, said Redondo. “It’s yield-less, volatile—down to $2,970 just days ago on profit-taking—and could dip if markets stabilise. But with recession odds at 60% and inflation risks looming, this rally does have legs. Investors are spooked — and gold’s their bunker.
Like McKeown, Riz Malik, Director at wealth manager, R3 Wealth, also believes the symbolic $3500 is now within reach: “With Trump unable to calm to markets or prove to them he is in control, gold will continue to surge. The next stop is $3500 and, in the current climate, that is very much possible.”
Missed the boat
But Scott Gallacher, Director at wealth manager, Rowley Turton, said investors considering buying now may be too late: “Given recent events, I’m not surprised to see gold has peaked. Gold typically proves its worth in times like these. But, with Trump seemingly having U-turned on his tariffs, and the investment seas looking a little calmer, investors might have already missed the boat.”
