Gold prices remain under pressure, trading below $3,300 per ounce after the recent announcement by former President Trump regarding a new baseline tariff rate of 10%. This policy move has sparked renewed volatility, as investors digest its potential impact on the global economic landscape and safe-haven assets like gold.

The XAU/USD pair, representing the gold versus US dollar rate, has faced selling pressure amid shifting market sentiment. While gold reached significant highs earlier this year—spiking near $3,500 per ounce—recent weeks have seen a pullback as profit-taking sets in and investors weigh the implications of US trade policy changes. The proposed tariffs could introduce added uncertainty to world trade, potentially leading to fluctuations in commodity and currency markets.

Despite the latest price retreat, analysts remain broadly optimistic about gold’s medium- to long-term outlook. Current forecasts suggest gold could average between $3,500 and $3,675 per ounce by the end of 2025, according to major institutions. Some projections see gold even higher, with expectations that increased central bank and investor demand will support further gains. However, volatility is likely to persist, especially as markets react to developments in US monetary policy, inflation trends, and ongoing geopolitical risks.

Gold’s role as a hedge against uncertainty remains intact. While the 10% baseline tariff policy may exert short-term pressure on prices, many analysts believe the underlying drivers—such as global inflation concerns and heightened geopolitical tensions—will continue to underpin demand for the precious metal.

For investors and traders, the outlook suggests a cautious approach. The gold market is poised for further swings as macroeconomic and political events unfold. Monitoring policy announcements, inflation data, and shifts in central bank strategies will be essential for navigating the evolving landscape of gold prices through the remainder of 2025.