Gold prices have been climbing steadily, approaching all-time highs, driven by economic concerns and significant changes to U.S. trade policies. On March 14, 2025, spot gold surged to $2,979.76 per ounce, marking the twelfth record high of the year, with prices up 1.6% on the day. This continued momentum follows a strong performance throughout 2024, with gold rising 27%, and it has already increased by 14% in 2025.
The recent surge in gold prices is largely attributed to uncertainties surrounding U.S. tariff policies under President Trump’s administration, alongside expectations for shifts in U.S. Federal Reserve monetary policy. Analysts suggest that gold could potentially trade between $3,000 and $3,200 as the market reacts to these changing dynamics. Alex Ebkarian, Chief Operating Officer at Allegiance Gold, predicted a bullish gold market for the long term, supporting an outlook between $3,000 and $3,200 for 2025. Similarly, Howard Lutnick, U.S. Under Secretary of Commerce, emphasized that economic slowdowns are pushing investment towards tangible assets like gold.
As the Federal Reserve prepares for its upcoming monetary policy meeting, analysts expect the central bank to keep its benchmark interest rate steady at 4.25%-4.50%. This stability could contribute to a more favorable economic environment. John Ciampaglia, CEO of Sprott Asset Management, emphasized the importance of assessing economic indicators before the Fed adjusts its policy, particularly with ongoing uncertainty surrounding tariffs and trade risks.
Gold’s resilience is evident not only in the context of U.S. policy shifts but also in the broader global economic landscape. The demand for gold has been bolstered by strong activity in gold-backed exchange-traded funds (ETFs), such as the SPDR Gold Trust, which reported increased holdings of 907.82 metric tons—the highest level since August 2023. Geopolitical uncertainties also continue to drive investment into gold, making it a sought-after asset.
Other precious metals have mirrored gold’s upward trend. On March 13, 2025, silver rose to $33.69 per ounce, with analysts forecasting it could reach $34 if it breaks through current resistance. Platinum also saw gains, trading at $990.25, while palladium reached $956.99.
Locally, the Korea Gold Exchange reported that the price of 24K pure gold was 512,000 won for buying and 594,000 won for selling, reflecting an increase of 3,000 won from the previous day. Other precious metals, including platinum and silver, also saw price adjustments, further indicating the rising demand across the sector.
The gold market’s performance, shaped by macroeconomic factors, geopolitical tensions, and strategic policy changes, has both experts and investors closely monitoring upcoming U.S. economic indicators. Positive sentiment around dovish Federal Reserve plans could pave the way for future interest rate cuts, potentially boosting gold prices further by mid-2025.
The release of the U.S. Producer Price Index (PPI) data is expected to be a key event, providing insights into inflation trends and influencing overall market direction. As the gold market remains volatile, investors are advised to stay vigilant and navigate these dynamic conditions carefully.
In conclusion, gold’s upward trajectory reflects a combination of economic uncertainty, trade risks, and strategic policy shifts, making it a key asset to watch as the global economic landscape continues to evolve.
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