Trump’s Tariffs Propel Gold Prices to New All-Time Highs – What’s Next?

The Yellow Metal’s Unstoppable Bullish Momentum

The yellow metal’s unstoppable bullish momentum has spilled over into 2025 – sending prices skyrocketing to new all-time highs as traders piled into the safe haven asset to capitalize on the famous “Trump Trade”.

Gold topped $2,805 an ounce for the first time ever on Friday – surpassing its October record and taking its gains to 7% this year, as trader’s hedge against President Donald Trump’s tariffs.

Put another way, that’s Gold’s biggest monthly gain since March 2024 – and by the time this month is over, that figure could very easily be a lot higher.

Trump’s Tariffs and Market Reactions

Following his inauguration, President Trump the self-proclaimed “Tariff Man” announced plans to impose 25% tariffs on Mexico and Canada by February 1. He also threatened to launch an economic war on the rest of the world with across-the-board tariffs – triggering concerns in the market that sweeping tariffs could apply to Gold, which has historically been exempt from import duties.

Whether or not that becomes a reality remains to be seen. However, savvy traders have not been waiting around to find out.

Gold Stockpiling and the COMEX Surge

Since President Trump’s inauguration, traders and financial institutions have been amassing stockpiles of Gold on COMEX – The New York Commodity Exchange, while in return created a shortage in London.

London is home to the world’s largest over-the-counter Gold trading hub, where major market participants trade directly with each other rather than via an exchange.

The surge into New York has seen Gold inventories on COMEX soar over 75% – posting the largest inflows since 2020. The significance of this cannot be understated. Right now, traders in London can’t get their hands on Gold because so much has been shipped to the United States – and the rest is stuck in the queue ready to join it in the bulging vaults of the COMEX Commodity Exchange.

The Impact on Gold Prices and Future Outlook

As of Friday, the value of Gold bullion stockpiles held in COMEX vaults rose to $85 billion – representing almost 31 million troy ounces, based on data tracked by GSC Commodity Intelligence. However, the total amount of Gold flows into the U.S could be far greater than reported due to additional shipments going into private vaults, which are a lot harder to track.

This historic and market-moving rush for Gold has depleted stocks of readily available bullion in London, which according to analysts at GSC Commodity Intelligence “will continue to drive Gold prices a lot higher in the coming months”.

Ultimately, everyone from leading economists to the world’s most powerful Wall Street institutions agree, that Trump’s tariffs will lead to a multitude of bullish tailwinds including higher inflation, global trade wars and heightened volatility – adding further fuel to the current Supercycle in Gold.