Gold rises to another record

Markets around the world continue to sink on fears about America’s protectionist trade policies, and investors keep ploughing money into gold, with futures hitting another record high Monday.

The latest round of US tariffs roll out today, Wednesday.

On Monday, the going price for New York spot gold hit a record US$3,122.80 per troy ounce – the standard for measuring precious metals, which is equivalent to 31 grams. That’s about US$886, or 40 per cent, higher than a year ago.

The price of spot gold is up 19 per cent since the start of 2025, per the data firm FactSet. By contrast, the stock market has tumbled. The benchmark S&P 500 is down 4.5 per cent this year as even blue chip stocks have faded.

Gold futures also reached a record in trading Monday, hitting close to US$3,157.40 an ounce.

Why is the price of gold going up? A lot of it boils down to uncertainty. Interest in buying gold typically spikes when investors become anxious – and there’s been a lot of economic turmoil in recent months.

The heaviest uncertainty lies with Trump’s escalating trade war. The president’s on-again, off-again new levy announcements and retaliatory tariffs from some of the nation’s closest traditional allies have created a sense of whiplash for both businesses and consumers – who economists say will foot the bill through higher prices.

Confidence began to slide at the start of the year for both American households and businesses due to fears of inflation and tariffs. Those worries seem to only be worsening, as US consumer confidence has been eroding for several months.

Over the last year, analysts have also pointed to strong gold demand from central banks around the world amid geopolitical tension, including wars in Gaza and Ukraine.