Gold prices surge to new highs amid geopolitical tensions, tariffs
File photo shows gold bars rest atop U.S. dollar banknotes, accessed on Mar. 31, 2025. (Adobe Stock Photo)
Gold prices have seen significant increases recently, with the price of a gram of gold starting at 3,838 Turkish Lira (TL) ($101) on April 3, 2025. This represents an approximate 1% rise compared to yesterday’s closing price.
The price of gold in ounces has also reached a new record high of $3,167, marking a peak in global markets. This surge comes on the back of new tariffs announced by U.S. President Donald Trump, which have amplified geopolitical uncertainties, leading to increased demand for gold as a safe-haven asset. Foreign institutions have raised their forecasts for gold, with expectations now pointing towards a potential rise to 3500 dollars per ounce this year.
Record-breaking gold prices on April 3, 2025
After U.S. President Donald Trump’s announcement of new “reciprocal tariffs” for all countries, including Türkiye, gold prices have reached new heights. The price of gold in ounces had been rising steadily in anticipation of such a move, and it reached a record level of $3,167 in global markets. By the morning of April 3, trading continued at around $3,148 per ounce.
The increase in the price of gold has had a noticeable impact on the local market as well. The price of gram gold in the spot market has started the day at 3,838 TL. This represents a 1% increase from yesterday’s closing price. In Istanbul’s Grand Bazaar, jewelers are trading gram gold between 3,870 and 3,920 TL.
New tariffs from the U.S. spark global reactions
U.S. President Trump imposed higher tariffs on countries with which the U.S. has a larger trade deficit, such as China, the European Union, and Japan. In addition, Trump reminded that all imported cars would be subject to a 25% tariff.
What does this mean for the global economy?
Trump claims that these new measures will increase domestic production in the U.S. and reduce trade deficits. However, many analysts warn that these tariff policies could slow global economic growth.
The risks of both recession and stagflation are becoming more prominent for the U.S., while the rising geopolitical uncertainties and the increasing purchases by central banks are factors supporting the price of gold. In March, the U.S. saw its Manufacturing PMI data fall into contraction territory, signaling potential economic slowdown.
2025 gold price forecasts: What’s next?
Forecasts for gold’s future performance continue to emerge, with financial institutions predicting further gains. Fitch expects gold to maintain a strong performance in the coming months, while Swiss bank UBS predicts that gold could reach as high as $3,500 per ounce. U.S.-based State Street Global Advisors, one of the world’s largest asset managers, believes that gold could surpass the $3,300-$3,400 dollar range this year.
