Gold has seen a 46% rise within 12 months as investors seek safe-haven assets amid ongoing economic and geopolitical instability and fallout from Trumpโs trade tariffs.
With the gold price surging to $2909.20 per troy ounce on February 10th, 2025 – its highest level in history – the psychologically significant $3,000 milestone now appears within striking distance.
Solomon Global, a specialist supplier of LBMA-approved gold and silver bars and coins, says that in the face of persistent global uncertainty, investors have flocked to gold as a reliable store of value, reminiscent of the initial flight to safety witnessed during the early stages of the COVID-19 pandemic.
Here the bullion dealer explores the key factors propelling goldโs historic bull run and what could push the barbarous relic into unchartered territory.
Whilst being buoyed by traditional price catalysts such as economic problems, inflationary pressures and geopolitical tensions, gold is simultaneously defying one of its historical inhibitors. Usually inversely correlated to the U.S. dollar, gold has appeared resistant to a relatively strong dollar suggesting a global paradigm shift and highlighting goldโs ability to perform in a broader set of conditions.
Central banks, particularly in emerging markets, are accumulating gold reserves to hedge against currency depreciation and economic turbulence. The World Gold Councilโsย Gold Demand Trends: Full Year 2024 (published February 5th,ย 2025) highlighted that gold demand hit a new record in 2024 and that central banks โcontinued to hoover up gold at an eye-watering pace.โ
Trumpโs aggressive trade tariffs โ including his latest announced incoming tariffs on imports of aluminium and steel – are exacerbating fears of a global trade war, re-igniting inflation concerns, and causing economic jitters across the board, prompting investors to seek refuge in safe-haven assets like gold. Additionally, mounting government debt, supply chain disruptions, and weakening consumer confidence are weighing on global markets. Concerns over a potential global recession and corporate earnings slowdowns are amplifying uncertainty, driving investors toward gold as a hedge against economic turbulence.
The US President didnโt resolve the Ukraine-Russia conflict within 24 hours of returning to the White House, and the Kremlin is reported to dispute Trumpโs claim that current peace talks are progressing. With Ukraine escalating its attacks inside Russiaโs Kursk region, the situation remains complex and unpredictable.
โThe current surge in gold prices and demand underscores the profound uncertainty gripping individual investors and global markets,” said Paul Williams, managing director at Solomon Global.
โThis doesnโt look like a short-lived rally โitโs a response to entrenched geopolitical tensions, economic fragility, and shifting global power dynamics. As volatility escalates, gold remains the ultimate hedge, offering stability in an increasingly unpredictable world. Considering these factors, the $3,000 milestone looks feasible in the next few weeks, and if gold was to make the same gains as it has over the last 12 months, weโre looking at $4250 this time next year.โ
As geopolitical tensions remain high and macroeconomic risks continue to mount, Solomon Global anticipates that goldโs bullish momentum will persist.
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