Gold prices hit a new record high on Wednesday, April 16, 2025, as rising tensions between the United States and China continue to worry investors.
The price of spot gold briefly climbed to $3,357.40 (£2,540) per ounce, its highest level ever, before dropping slightly. Gold has gone up by about 33% this year, as more people turn to it for safety during these uncertain times.
The jump in gold prices came after Federal Reserve Chair Jerome Powell warned that President Donald Trump’s new tariffs could slow down the economy, raise prices, and lead to job losses.
Speaking in Chicago, Powell said the new tariffs could have serious effects. “Higher-than-expected tariffs announced in recent weeks could result in slower US economic growth and rising prices for consumers,” he said.
Markets around the world have been shaken in recent weeks. Since returning to office in January, Trump has put 145% tariffs on goods from China. In response, China has placed 125% tariffs on US imports.
Because of this uncertainty, many investors are buying gold to protect their money. Stephen Innes from SPI Asset Management said gold is now in “full lifeboat mode” as people lose trust in decisions made by politicians.
He added, “The dollar is struggling due to fast changes in trade policy, and investors are no longer confident in political choices.”
Some experts are comparing this gold rally to the one seen during the Iranian Revolution in 1979, when prices nearly doubled in just three months.
Jesper Koll from Monex Group called gold a “trust hedge”—a way to protect against both inflation and bad government decisions. He said the Trump team’s “move fast and break things” style is making investors nervous.
The Trump government says the tariffs are meant to bring jobs and factories back to America and increase tax money. But many investors fear that the tariffs will instead raise prices and hurt trade.
