Gold reach new heights

Gold prices have crossed the $3000 mark per ounce for the first time in history. This comes partly as a reaction to the tariffs that have been put in place by the American President, Donald Trump and the uncertainty in the world after the Russian invasion of Ukraine. This pushes investors to invest in safe-haven assets, like gold. Gold had its all time high at $3017 per ounce.

Since the Russian invasion of Ukraine in 2022, central banks have turned to invest in gold rather than the American dollar. The freezing of Russian assets has reinforced concerns about the U.S. dollar being used as a geopolitical tool, leading some countries to seek alternatives for reserves. This has likely contributed to increased demand for gold, as nations and investors view it as a safe-haven asset that is not subject to political influence. Consequently, this shift in sentiment has put upward pressure on gold prices. 

The American dollar has seen a drop of more than 4% since the start of 2025. This is the biggest drop since the financial crisis in 2008. This stems from the uncertain economy and the growth of foreign policies in The U.S. President Trump introduced a tariff on Canadian and Mexican goods, but the trade war has not been at its worst yet. We think the trade war is in the starting phase of a brutal, but hopefully short trade war. The reasoning for this is that the U.S. is dependent on import and exports on a day to day basis. High tariffs against other countries will make it difficult for a lot of American companies to survive. If we take a look at Apple, one of the U.S. biggest companies, and where they produce their goods, we can see that they are depending on production in China. In this case, it's a lose-lose situation for both consumers and producers, as the tariff (if they continue to produce in China) will be put directly on consumers. If they move the production to the U.S, the prices will also increase significantly. 

When the trade war is at its peak, we think the price of gold will reach a new all time high. People are scared of their own economic situation, recession, and even fear of a third world war breaking out, and therefore invest in gold, which during history has shown to be a safe haven for investments. We therefore think that gold are heading towards new heights.