Best Countries to Buy Cheapest Gold in 2025

Gold prices extend rise after Trump unveils tariff plans

Gold prices are holding their ground above $3,130 on Thursday following a strong 0.71% gain the day before, fueled by a fresh wave of safe-haven demand after former President Donald Trump announced sweeping new tariffs. As of early Asia trading, XAU/USD sits at $3,136, unchanged but elevated.

Trump’s return to the White House has reignited a global trade war. On Wednesday, he unveiled a blanket 10% tariff on all U.S. imports, along with higher, retaliatory duties targeting key partners: 34% on China, 46% on Vietnam, 24% on Japan, 20% on the EU, and 10% on the UK. The announcement came with visual flair—a poster listing the reciprocal tariffs as a direct response to foreign levies on U.S. goods.

Gold Rallies Over $500 in 2025, Breaks Record Highs

In reaction, gold—a classic hedge against economic and geopolitical turmoil—has soared more than $500 this year, touching an all-time high of $3,148.88 on Tuesday. Since bottoming at $2,536 in November 2024, gold has climbed over 23%.

“Gold's prospects are excellent here, with $3,200 the new short-term target,” said a market strategist. “There are plenty of unanswered questions, and the sense that many things might be negotiable will make markets very volatile in the short term.”

Peter Grant, vice president at Zaner Metals, emphasized that a breakout above the $3,147–$3,150 resistance zone could “lend confidence to bullish outlooks targeting $3,300 and even $3,500.”

Dollar Slips, Yields Climb—Gold Finds Balance

The Dollar Index (DXY) fell 0.4% after Trump’s tariff reveal, making gold more attractive to non-dollar buyers. Meanwhile, the U.S. 10-year Treasury yield rose three basis points to 4.19%, and real yields nudged up to 1.862%, offering a headwind to bullion that is being offset by the greenback's decline.

Economic Data Overshadowed by Tariffs, But Key Reports Loom

Recent data showed U.S. economic momentum remains strong. The ADP report indicated that private employers added 155,000 jobs in March—well above estimates and February's 84,000 gain. Factory Orders also rose 0.6% MoM in February, slightly beating forecasts.

Still, markets are clearly sidelining economic data in favor of geopolitical developments. Focus now turns to Friday’s Nonfarm Payrolls and a speech from Fed Chair Jerome Powell, both of which could shape expectations for monetary policy. Futures markets are currently pricing in over 73 basis points of Fed rate cuts.

Technical Outlook: Gold Holds Above Key Support, Bullish Path Clear

XAU/USD remains firmly in an uptrend. As long as the price holds above the $3,100 level, bulls maintain control. The RSI remains in overbought territory but has room to stretch higher given the strength of the move.

A clean break above the $3,149 area could set the stage for a run toward $3,200 in the near term, with $3,300 and $3,500 potential medium-term targets. On the downside, initial support lies at $3,100, followed by $3,057 and then $3,000.