Gold Price Breaks US$2,900 as Tariff Turmoil Boosts Safe-haven Appeal

The gold price gained 30 percent in 2024, setting new highs along the way.

It broke through US$2,500 per ounce, then continued higher, hitting US$2,600 and then US$2,700.

Less than a month and a half into 2025, the breakneck pace continues. The price of gold broke through the US$2,800 mark on January 31, and pushed above US$2,900 during intraday trading on Monday (February 11).

Gains since the start of the year have been primarily driven by economic uncertainty, as US President Donald Trump has vowed to make sweeping changes to trade and foreign policy and amid relative strength in the US dollar.

The most recent announcement came on Sunday (February 10), when Trump told reporters on Air Force One that he was planning 25 percent tariffs on aluminum and steel and reciprocal tariffs on all countries. He said a formal announcement would be made on Monday, but at the time of publication, no announcement had been made.

There was quick pushback on the tariff plans as the EU threatened its own retaliatory tariffs.

The new tariffs come just one week after the US backed down from imposing sweeping 25 percent tariffs on all goods entering the US from Mexico and Canada. The president appeared to be leveraging the threat of tariffs against its two trading partners to increase border security. Both countries had previously announced significant increases in funding for technology and patrols along their respective borders.

Recent weeks have also seen the President make remarks about the future of Gaza that would see the displacement of millions of Palestinians. Trump also suggested that Gaza could become US property as it works to redevelop the area, likening it to the Riviera. On Monday he expanded on the idea saying that Gaza residents would have no right to return.

The language and tone of his statements were met with pushback, particularly from other Middle Eastern countries, which argued it could push the region deeper into conflict.

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Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.