Gold Prices Surge Past $2,950 Amid Global Uncertainty

LOS ANGELES, CA — Gold prices soared to a new record high on February 20, 2025, reaching $2,954.72 per ounce amid rising global uncertainty. This surge follows continued tensions from tariff negotiations and ongoing conflicts such as the Russia-Ukraine war.

The precious metal’s price has fluctuated recently, settling around $2,935 after the peak. With gold now up 10.4% in 2025 and 44.8% over the past year, many investors are turning to it as a safe-haven asset.

“The target of $3,000 is very much in sight. In uncertain times, investors flock to safe-haven assets like gold to hedge against volatility,” said Prem Raja, head of trading at Currencies 4 You.

Gold prices began their ascent earlier in the month when they first crossed the $2,900 mark. As of February 21, the outlook remains strong despite a slight dip in prices following their peak.

The increase in gold prices can be attributed to several factors, including significant buying from central banks and concerns over inflation. Over the past five years, gold’s value has increased by over 78%. Each standard gold bar, weighing about 400 ounces, is now valued at more than $1 million.

The recent spike was further provoked by U.S. President Donald Trump‘s announcement of a 25% tariff on imports of steel and aluminum, which has raised fears of inflation. Financial experts indicate that the tariffs may lead to market instability, contributing to the rising demand for gold.

Faisal Sheikh, managing director at Monmouth Capital, commented, “It’s a perfect storm for gold. Trump’s tariffs could spark inflation and increase uncertainty, both of which drive demand for gold.”

While gold has historically performed well during economic downturns, current market dynamics shape its appeal. The Federal Reserve’s potential interest rate cuts fall within this conversation; lower interest rates typically enhance gold’s attractiveness.

Central banks, particularly in countries like Russia, China, India, and Turkey, have ramped up gold purchases to hedge against economic fragmentation and bolster their reserves. According to Juan Carlos Artigas, global head of research at the World Gold Council, “Western investors flocked back to gold as central banks started cutting interest rates,” and these purchases exceeded 1,000 metric tons for the third consecutive year in 2024.

As geopolitical tensions persist and economic forecasts become increasingly uncertain, gold maintains its reputation as a steadfast investment. Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted that conflicts such as the ongoing situation in Gaza and the war in Ukraine drive investors toward gold as a security measure.

In the wake of mounting global strife, the market continues to show that investing in gold may offer an essential hedge against economic risks. As the year unfolds, analysts anticipate that central banks will likely keep acquiring gold, further inflating its value. Louise Street, senior markets analyst at the World Gold Council, predicts that demand for gold might increase, especially with China introducing new buying opportunities for insurers.

Experts see potential for further price increases. Predictions vary, with some expecting gold to surpass the $3,000 mark by the end of 2025. Eric Strand, CEO of AuAg Funds, stated that inflationary pressures might push gold even higher. “Gold could reach between $3,000 and $3,300 this year,” he said.

While the future of gold prices remains uncertain, the current landscape suggests that volatility in traditional markets may sustain the yellow metal’s rising value. Investors are reminded, however, that gold, like all investments, can fluctuate and should comprise only a portion of a diversified portfolio.