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Gold Hits Record $3,125: Soaring 19% in Q1 Amid Tariff & Geopolitical Jitters

Gold prices soared past $3,125 to a record high in Q1 2025, gaining nearly 19%, marking its second-strongest quarter since 1986, when it surged 22.93%. The rally is largely driven by inflation concerns stemming from U.S. tariffs. Last year, gold rose over 27%, fueled by a favorable monetary policy, strong central bank buying, and growing investor demand for safe-haven assets.

Trump is set to announce reciprocal tariffs on April 2, with automobile tariffs following on April 3, further stoking inflation fears. Other key factors supporting gold’s rise include expectations of rate cuts, central bank demand, and increased investment in exchange-traded funds.

Geopolitical tensions have also played a role. On Sunday, Trump expressed frustration with Russian President Vladimir Putin and warned of secondary tariffs of 25%-50% on buyers of Russian oil if Moscow obstructs his efforts to end the war in Ukraine. These economic and political uncertainties continue to push investors toward gold as a hedge against risk.

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