The US president confirmed that he would make the formal announcement this Monday, marking another significant escalation in his ongoing trade policy overhaul.
As gold prices continue to climb, many experts believe the potential for further gains is high, with the $3,000 per ounce mark increasingly within reach.
“Gold remains in a sweet spot, with little standing in its way,” Westpac Banking Corp analyst Richard Franulovich said in a note. “An intrinsically unpredictable and disruptive Trump, hurtling tariff threats at allies and adversaries alike, alongside the threats of 100% tariffs on the BRICs if they diversify away from the dollar, all point to a lift in gold’s safe haven appeal.”
The yellow metal has now gained 10% so far in 2025, adding to its 26% rise in 2024. Analysts believe that the uncertainty stemming from escalating geopolitical tensions and the potential for US tariffs is making gold even more attractive as a safe haven for investors.
Kathleen Brooks, research director at XTB, said: “Interestingly, Trump announced his latest tariffs late on Sunday, which suggests that he is not too worried about the market reaction.
"Typically, Trump has announced tariffs earlier in the weekend, as if he was watching the reaction and to give himself time to back track before stocks or risk assets sold off too sharply. This may suggest that Trump is determined to impose tariffs on these industrial metals.
“These tariffs are targeting specific products, rather than individual countries, which makes it hard for any negotiations to take place. We think that this move could boost the gold price, as it may lead to a further flurry of demand to bring gold on shore to the US, in case Trump imposes tariffs on precious metals.
“The question for investors is whether gold will reach the psychologically significant $3,000 level on the back of ever-growing tariff levies. So far, the gold price is higher by $25 early on Monday.”
Goldman Sachs prediction that the precious metal would jump to $3,000 per troy ounce by December 2025 now seems only weeks, if not days, away.
Uncertainty related to heightened geopolitical tensions and the potential for tariffs from the US is increasing the attractiveness of gold as a safe haven.
“Geopolitical shocks, including tariffs, typically boost both gold and the dollar,” Goldman Sachs’ analysts said.
David Morrison, senior market analyst at Trade Nation, said: “Gold’s daily MACD pushed further into overbought territory, suggesting that buyers should exercise some caution. But it’s also worth noting that gold’s advance so far this year has been remarkably measured. There have been few large daily jumps or dips. Instead, gold has made steady upside progress since the end of December.
“Traders are now picking up on gold’s potential as a safe haven and store of value as tariff threats and countermeasures seem the order of the day.”
Gold falls under the category of alternative investments, named after their nature as alternatives to traditional investment assets such as bonds and equities. These can be anything from art to property, hedge fund investments, gold, and gold funds, and even digital assets.
For those looking to invest in gold, there are several options to consider, ranging from direct purchases of physical gold to investment vehicles like exchange-traded funds (ETFs) and exchange-traded commodities (ETCs).
ETFs and ETCs offer a convenient way to gain exposure to gold without the hassle of storage or concerns over purity. Gold ETFs hold gold bullion or gold futures, and their value is derived from these underlying assets. These products trade like stocks, providing a liquid and accessible way to invest in gold.
The costs of gold ETFs typically include ongoing charges and platform fees. Investors should also keep in mind that the performance of these funds can be affected by currency fluctuations, as most physical gold is priced in US dollars.
How to invest in gold via ETFs or ETCs
A gold ETF allows an individual to invest in gold bullion quickly, as delivery and ownership of gold never actually happens. ·Olivier Le Moal via Getty Images
If you look at gold purely as an investment and do not want to handle things like storage or purity levels, you can choose to invest in an ETF or ETC.
These investment products are funds that consist of only one asset — gold. They trade just like a normal stock but get their value from holding "underlying assets" centred on the precious metal, such as physical gold, gold futures, or exposure to companies that mine the metal.
The main costs of investing in gold ETFs will be the ongoing charge and any platform fees. You should also pay attention to where the product trades. Most physical gold is priced in US dollars, so if an ETF or ETC operates in sterling, then the USD/GBP (GBP=X) rate will likely play a significant role in its performance.
Looking at gold ETFs traded in the USA, the DB Gold Double Long Exchange Traded Notes (DGP) has returned 17% this year.
ProShares Ultra (UGL) has delivered 17% and Invesco DB Precious Metals Fund (DBP) has recorded an 8% gain since January. However if you look at its performance over the past 12 months, this figure surges to 35%.
If you want to keep things in pounds, some of the top gold ETFs in the UK include the Invesco Physical Gold ETC (SGLPL.XC). It comes with a 0.12% fee and aims to replicate the spot price movement of gold bullion as closely as possible. However, its performance has wavered, with a year-to-date drop of 12%.
There is also the iShares Physical Gold ETC (SGLNL.XC), for the same fee. This product has the particularly of only accepting gold bullion that meets the Good Delivery standards set by the London Bullion Market Association (LBMA). All assets are classified as responsibly sourced, only allocating gold that was mined after 2022. It has lost 10% year-to-date.
The HANetf Royal Mint Responsibly Sourced Physical Gold (RMAP) provides an ethical option. This fund only holds gold bars approved by the LBMA from refiners that meet strict standards. In addition, the Royal Mint is developing the world’s first plant to recover gold from electronic waste, ensuring that the gold used is sustainably sourced and has a low environmental footprint.
The RMAP fund, traded on the London Stock Exchange, charges a modest annual fee of 0.25%. It has risen 13% since the beginning of 2025, making it a strong performer in the current market.
If you’d prefer a fund, Troy Trojan (0P00002AVE.L) is on Hargreaves Lansdown’s (HL.L) top funds to watch in 2025 list. It’s up 9% this year.
The Troy Trojan fund had 12.6% exposure to gold-related investments as of the end of November, including its top positions in the Invesco Physical Gold (SGLD.L) and iShares Physical Gold (SGLN.L) exchange-traded commodities.
However, other major holdings in the fund include consumer goods company Unilever (ULVR.L) and tech giant Alphabet (GOOGL, GOOG).
Best gold stocks and how to invest in mining companies
Investing in gold mining companies is another way to get exposure to the precious metal. ·Created by drcooke via Getty Images
Another route for gaining exposure to gold is through gold mining stocks. These investments provide the opportunity to benefit from the growth and profitability of mining companies while also potentially receiving dividends.
You are investing in a company, just like you would do with any other listed business, but in this case, you secure exposure to gold and could potentially achieve higher returns as gold companies expand production and reduce costs, which can drive profits. As you own shares in the company, you could also be in line for dividends.
In the US, Galiano Gold (GAU), Equinox Gold (EQX) or ElDorado Gold (EGO) shares have a track record of delivering dividends to investors. Barrick (GOLD) is also a household name for gold investors.
Again, if you prefer to keep your investments UK-bound, there is Empire Metals (EEE.L), Serabi Gold (SRB.L) or Resolute Mining (RSG.L).
For those seeking more flexibility in their gold investments, the Royal Mint now offers a solution in the form of "digital gold". This option allows investors to purchase a fraction of a gold bar, starting from as little as £25. It provides an easy way to gradually build a gold position, making it an attractive choice for those who wish to invest on a month-by-month basis.
The Royal Mint charges a storage fee of 0.5% plus VAT, ensuring that the gold is securely held. As with all investments, it's important to remember that past performance is not an indicator of future results, and gold should be considered as part of a well-diversified portfolio to mitigate risk.
