Gold prices have come under pressure, retreating below the $3,300 mark following recent geopolitical developments and new economic policies. The announcement of a baseline 10% tariff rate by the Trump administration has added a fresh layer of uncertainty to global markets, affecting investor sentiment and the short-term trajectory of precious metals.

Despite this short-term pullback, market analysts remain optimistic about gold’s long-term prospects. Multiple forecasts suggest that ongoing geopolitical instability, persistent inflation concerns, and sustained central bank demand will continue to underpin gold prices in 2025. Some predictions see gold reaching as high as $3,816 in the second half of the year, with December projections in the $3,600–$3,800 range. Other major institutions, including UBS and Goldman Sachs, have set end-of-year targets between $3,500 and $3,700, citing gold’s status as a safe-haven asset in times of economic and geopolitical uncertainty.

The market, however, is not without risks. A strengthening US dollar and profit-taking activity could lead to short-term price corrections. Nevertheless, experts point to factors such as moderate US core inflation expectations and ongoing global turmoil as supportive for gold at elevated levels. JP Morgan, for instance, forecasts an average gold price of $3,000 per ounce by the fourth quarter of 2025, emphasizing the potential for upside surprises if current uncertainties persist or escalate.

For investors, the current gold price volatility serves as a reminder of the complex forces at play in global markets. While tariffs and shifting economic policies may introduce temporary headwinds, the overall outlook for gold remains robust with the potential for further gains should global risk factors remain elevated. For those seeking portfolio diversification and a hedge against volatility, gold continues to assert itself as a valuable strategic asset in 2025.