How High Will Gold Prices Go During President Trump’s Second Term?

The Return of Tariff Man: Trump’s Bold Start to Term Two

This week was about one thing and one thing only: Donald Trump’s return to the White House for a second term and he certainly didn’t disappoint.

Everything that traders expected from another Donald Trump presidency was made a reality, just hours after he was sworn in as the 47th President of the United States.

Trump delivered a muscular inaugural speech on Monday, setting out a confrontational policy – both domestically and internationally – and declared the beginning of a new “Golden Age” in America.

One of President Trump’s first actions as he returned to the Oval Office was signing a barrage of market-moving executive orders and by doing so, officially ushering in a new era of disruption for the global economy.

Trump, the self-proclaimed “Tariff Man” announced plans to impose 25% tariffs on Mexico and Canada by February 1. He also threatened to launch an economic war on the rest of the world with sweeping and across-the-board tariffs on all imports coming into the U.S.

Precious Metals Shine in Economic Uncertainty

Gold and Silver prices immediately benefited from a rapid increase in uncertainty caused by the first wave of Trump’s executive orders – especially the announcement of tariffs with traders evaluating their inflationary impact and effects on global monetary policy.

Canada is one of the world’s largest Gold-producing countries – consistently ranking among the top four Gold producers and exporters globally.

According to analysts at GSC Commodity Intelligence – the United States currently holds pole position as the world’s top importer of Canadian Gold. In 2023, Canada exported over 133 tonnes of Gold to the United States, accounting for more than 37% of Canada’s total Gold exports.

And then there’s Mexico, which holds the crown as the world’s number one producer of Silver.

Data compiled by GSC Commodity Intelligence – shows Mexico accounts for almost 25% of the world’s total Silver production, producing approximately 6,400 metric tons annually.

The possibility of Gold and Silver being caught up in Trump’s tariffs has sent both precious metals on red-hot run – with Gold prices closing in on their all-time record high of $2,790 an ounce and Silver prices revisiting $31 an ounce.

Gold prices scored consecutive back-to-back all-time record highs in 2024 – not once, not twice, but on 39 separate occasions.

The big question now is:

Will Trump’s Tariffs Push Gold Prices to New Record Highs in 2025?

Only time will tell, however one thing we do know for certain is that during Trump’s previous presidency Gold prices experienced exponential growth. When Trump took office in January 2017, Gold was trading near the $1,200 an ounce mark. By the end of his term in January 2021, Gold registered a high of $1,957 an ounce.

Whichever way you look at it, one thing is clear. In this new Trump 2.0 era of global macroeconomic uncertainty “volatility is the new normal” and it certainly won’t take much for Gold prices to reach new record highs in the coming weeks and months ahead.