Despite the passage of time, volatility in the global gold market has not subsided. Instead, gold prices have recently surpassed earlier forecasts and reached new historic highs, creating ripple effects across global and national economies. Analysts say that as long as global uncertainty persists, it will be difficult to predict when the gold market will stabilize. However, following a recent decision by former U.S. President Donald Trump, a temporary decline was observed in the prices of gold, silver, and platinum.
Against this backdrop, British media outlet BBC has identified three major reasons behind the ongoing instability in the market for gold and other precious metals. According to the report, all three factors are directly linked to Trump’s trade policies and political decisions.
Earlier this week, international gold prices crossed the $5,000-per-ounce mark for the first time in history, briefly approaching nearly $5,500. At the same time, prices of silver and platinum also surged. The impact was felt in Bangladesh as well. Last Thursday, the price of 22-carat gold in the local market rose to BDT 286,000 per bhori, the highest level ever recorded. However, over the next two days, prices fell sharply by nearly BDT 30,000 per bhori.
The BBC report notes that when signs of political stability emerge in the United States, prices of precious metals tend to decline relatively quickly. But Trump’s decision to impose higher tariffs on countries he considers trade-unfriendly has created widespread uncertainty in global trade. Emma Wall, Chief Investment Strategist at UK-based financial services firm Hargreaves Lansdown, said Trump’s trade policies have unsettled investors, contributing significantly to the rise in gold prices.
According to Emma Wall, whenever global conditions become unstable, gold naturally becomes more attractive as a safe-haven investment. Trade tensions, geopolitical fragmentation, and political uncertainty in the United States have pushed investors toward gold as a defensive asset.
She also pointed out that increased gold purchases by central banks are another major driver behind rising prices. Many countries are gradually reducing their reliance on the U.S. dollar and increasing gold reserves instead. The freezing of Russia’s dollar-based assets has served as a warning to other nations, encouraging them to view gold as a more neutral and secure reserve asset.
Analysts believe Trump’s trade policies are placing pressure on global supply chains. Tensions between the United States and regions such as Europe, China, and Canada have heightened uncertainty about future economic conditions. In such an environment, investors tend to move away from riskier assets and shift their capital into safe-haven investments like gold.
Geopolitical developments are also influencing the gold market. The war in Ukraine, the Gaza crisis, and prolonged instability in the Middle East have complicated global politics. Additionally, Trump’s remarks regarding Greenland have raised questions internationally about the direction of U.S. foreign policy. As a result, confidence in the U.S. dollar has weakened to some extent, further supporting higher gold prices.
Hamad Hussain, an economist at Capital Economics, said that gold is increasingly being viewed as a relatively safe investment against the risks associated with Trump’s foreign and financial policies. This perception has brought gold back to the center of investor discussions.
Typically, when the U.S. dollar weakens, gold prices rise, as gold becomes cheaper for holders of other currencies. Recent declines in the dollar index have coincided with the upward movement in gold prices. For similar reasons, investment in silver and platinum has also increased.
However, the upward trend did not last long. Although uncertainty initially surrounded the appointment of the U.S. Federal Reserve Chair, news that Kevin Warsh—widely regarded as a relatively stable choice—was nominated helped calm markets. Shortly afterward, prices of gold, silver, and platinum experienced a sudden drop.
Economists say this decline is temporary. Ongoing wars, fears of renewed trade wars, new tariffs, and continued political uncertainty surrounding Trump are expected to keep the gold market volatile. The appeal of gold as a safe-haven investment remains strong.
Overall, Trump’s policies and statements are influencing not only U.S. domestic politics but also global trade and commodity markets. The recent sharp fluctuations in gold prices are a clear reflection of that reality.
