Why gold prices are surging to record highs – NPR

President Trump's chaotic tariff policies continue to shake up the US stock market, which has just finished the worst quarter in years. But for some investors, this uncertainty all has a big gold lining.

There is a gold price Investors hit their all-time highs this week as they snap what is often considered safe shelters. Earlier on Tuesday, Gold Futures retreated a bit, reaching a new record price of $3,177 per ounce. However, they still have an increase of over 18% since the beginning of the year, while the S&P 500 has a decline of over 4% over the same period.

The gold frenzy comes as markets around the world continue to panic over Trump's tariffs, which are widely expected to raise consumer prices. The trade war also created great uncertainty for businesses and investors. It also raises global tensions between the United States and its biggest trading partner, screaming fears about the increasing possibility of a US economic recession.

The president pledged to roll out more tariffs on Wednesday. He calls it “liberation day.” But the sudden taxes he's already leviing, and the unon-turned ways he's announced, are already shaking investors, businesses, economists and consumers.

Of all this uncertainty, Below are three things you need to know about the surge in gold prices.

Gold prices are turbocharged by customs duties

Gold prices have been steadily rising over the years, but have reached a really hot streak since the beginning of 2025.

Some analysts hope that prices will continue to climb. Michael Widmer, head of metals research at Bank of America, released a report last week predicting gold prices will skyrocket to $3,500 per ounce over the next 18 months.

In an interview with NPR, Widmer said many factors contribute to a long-standing stage in gold prices, but said the recent surge is “almost exclusively driven” by tariff-related fears and uncertainties.

“What has really supported the gold market is the tensions they have — the uncertainty about economic policies and policy uncertainty,” he says.

Gold may be known as a “safe shelter,” but it can become volatile

Despite the current years of rally, Widmer warns that gold could be unstable. (As investors have seen it in both stock and Bitcoin prices recently, anything that rises could come back at any time.)

However, Gold has long enjoyed a reputation for providing security in what is known as the “terror trade.” As a glowing precious metal that can be held (and stored!) gold offers the appearance of safety and solidity next to stocks and other (often more material) financial products.

“We're committed to providing a great opportunity to help you,” said Lee Baker, Certified Financial Planner, Founder and CEO of Claris Financial Advisors in Atlanta.

Gold prices have skyrocketed, but the stock market has fallen as investors worried about Trump's tariffs.

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Michael M. Santiago/Getty Images/Getty Images North America

But buying money in a hurry may not be right for anyone

Baker warns that even in times of crisis there are drawbacks in buying and owning gold. Unlike stocks and bonds, for example, gold does not pay dividends or interest. So the only way to make money from this investment is to buy some and sell it after the price goes up.

Investing in gold also has physical and physical challenges, especially for those who want to buy the real thing. For example, buyers should consider how to store it. And whether to pay for the security and insurance needed to maintain precious metals in your home.

For those who are Gold Cure, but are probably not ready to adopt the end-of-life prepper lifestyle, Baker points out that it is possible to invest in gold-backed funds that do not require physical ownership of precious metals.

Still, he says, “If you're buying money right now, just because you're caught up in a buzz, it's because it's going up. You'll probably say you'll leave it alone.” “Because it's likely to lead to some kind of disappointment.”

More widely, Baker says the current gold frenzy highlights a bigger lesson about investing in mere asset classes such as stocks.

“Your mom told me not to put all your eggs in one basket. That applies to investments too,” he says. “Diversification is important.”