Stock Market Chaos: Gold Prices Soar to Record Highs—What You Need to Know

An escalating conflict in trade between the United States and China , combined with the economic uncertainty sparked by U.S. President Donald Trump 'S economic strategies are prompting investors to gravitate toward one of the more secure options: gold.

The precious metal soared past $3,200 an ounce on Friday after Trump's tariffs led to volatile global markets, sparking worries about inflation and a potential worldwide economic downturn, as reported by Reuters. Although the president suspended most tariffs, He increased China's rates to 145%. , leading Beijing to increase its tariffs on U.S. products to 125%.

UBS analysts anticipate that gold's upward movement will continue into the following year, with prices stabilizing at elevated levels in the long term. peak at $3,500/oz this year.

Begin your day with more knowledge. Receive all essential news directly in your inbox every morning.

What factors should you keep in mind when purchasing gold?

The appropriateness of purchasing gold hinges on several elements such as your financial objectives, how much risk you can stomach, the duration for which you plan to invest, the general state of the economy, and predictions regarding the gold market.

Traditionally, numerous individuals consider gold as a safeguard against inflation and changes in currency value. according to Investopedia Some view it as a safe haven during financial crises. Concurrently, individuals might consider adding it to their stock and bond portfolios for the purpose of diversification, due to its minimal connection with these asset types.

If you examine gold's historical performance, it tends to thrive during uncertain times," noted Joseph Cavatoni, the chief market strategist for North America at the World Gold Council. "Over the past seven recessions, gold has performed positively in five instances." He further added, "Those seeking a reliable means of storing wealth and aiming to diversify their investment portfolios can rely on gold’s consistent ability to provide these benefits.

Costco deals in gold.

In October 2024, Costco mentioned achieving significant success with its gold bar sales to members. During the company’s fourth-quarter earnings call, Costco CEO Gary Millerchip stated that the metal "served as a significant boost to e-commerce comparisons."

An In April 2024, the Wells Fargo report was published. indicated that the bank's experts think the wholesale retail behemoth is offloading somewhere between $100 million to $200 million worth of gold each month.

Contributors: James Powell from USA TODAY and Reuters

Fernando Cervantes Jr., who works as a trending news reporter for USA TODAY, can be reached via email at fernando.cervantes@gannett.com and followed on X under the handle @fern_cerv_.

The article initially appeared on USA TODAY: In the midst of a tumultuous stock market, gold prices have hit an all-time peak. Here’s what you need to understand.