Gold Wobbles After Hitting Record High Amid Tariffs — Should Investors Worry?
Written by
Vance Cariaga
Edited by
Cory Dudak
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The price of gold set a new all-time high in early April as investors looked for a safe haven to offset stock market losses tied to President Donald Trump’s sweeping tariffs. However, even that safe haven turned wobbly, as gold prices moved lower at the end of last week (though most experts remain bullish on the metal).
Spot gold fell 2.9% to $3,024.20 an ounce on Friday, April 4 after hitting a session low of $3,015.29 earlier in the day, CNBC reported. That came a day after gold touched a record high of $3,167.57. Gold prices ended the week down nearly 2%.
One reason for the dip is that many investors sold part of their gold holdings to cover losses from the tariff-related stock market meltdown, experts explained.
“We tend to see gold as a liquid asset being used to meet margin calls elsewhere, so it’s not unusual for gold to sell off after a risk event given the role that it can play in a portfolio,” said Suki Cooper, an analyst at Standard Chartered, told CNBC. “It’s behaving in line with the historical trends.”
Gold Performance in 2025 So Far
Despite the recent price decline, gold is still up about 15% in 2025, largely due to helping investors hedge against other assets that are vulnerable to economic and political uncertainties. Most observers expect gold to remain a solid hedge against tariffs and global trade wars.
“Gold’s soaring value is a stark barometer of global unease, reflecting deep economical and geopolitical tensions,” Paul Williams, managing director of Solomon Global, said in a press release shared with GOBankingRates. “With no relief in sight for the forces driving this surge, any significant near-term retreat seems unlikely. Even at record levels, gold demand remains robust because investors recognize the precious metal’s ongoing role as a hedge against inflation, geopolitical instability and financial market volatility.”
Central banks “remain key” players in gold’s ascent, Solomon Global noted. It cited a World Gold Council report showing that in 2024, central bank gold purchases exceeded 1,000 tons for the third straight year and accelerated “sharply” during the fourth quarter. Central banks have “remained bullish” on gold this year.
In March, Williams said that gold hitting $3,500 an ounce was “within the realms of possibility.” He cited a recent Goldman Sachs report in which the investment bank raised its year-end gold price outlook and noted that in a “tail-risk scenario,” gold prices could even surpass $4,200 an ounce by the end of 2025.
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