As of January 31, 2025, gold prices have reached record highs, with spot gold trading at approximately $2,793.84 per ounce, after peaking at $2,799.71 earlier in the session. This surge is primarily driven by investor concerns over potential U.S. tariffs, particularly President Donald Trump’s announcement of a 25% tariff on imports from Mexico and Canada. Such geopolitical tensions have led investors to seek refuge in gold, a traditional safe-haven asset.
Additionally, increased demand for physical gold in New York, spurred by fears of impending tariffs, has contributed to the price surge. The April gold futures contract on Comex peaked at $2,853.20 an ounce. Concerns that 25% tariffs could elevate the price of imported gold to $3,500 an ounce have prompted a frantic rush to buy gold and silver.
Analysts suggest that ongoing tariff threats could push gold prices even higher, potentially beyond $2,800 per ounce.