Gold Hits An All-time High: Why The Price Is Surging

The price of gold broke its historical record today (April 10, 2025), reaching $3,171 USD per ounce. Gold, which started at $2,054 USD per ounce in early 2024, surged by 51% through the year, sparking excitement among investors. Those who follow me know I am not surprised by this appreciation. Of course, the question on everyone’s mind is whether gold will continue to rise. 

Analysts suggest that the recent price increase is due to the tariffs on precious metals that Trump intends to impose on Europe. Although tariffs have a clear effect, they cannot explain the tons of gold reserves transported by plane from Europe to the U.S. Economic stagnation, persistent inflation, and radical geopolitical power balance changes have reminded investors that gold is real money. 

Long-rising geopolitical conflicts have entered a new phase with Trump's re-election. Trump's economic policies, which focus on domestic national interests, will accelerate the separation between the U.S. and other countries of the Western Bloc. Economic uncertainties will undoubtedly increase in the emerging geopolitical balance of power. In this context, gold will be an even more reliable choice than financial investments based on fiat money.

In an increasingly unpredictable world, precious metals provide a reliable way to diversify and protect investments. Let's examine the recent rise in gold prices and why expats will want to invest in gold.

KEY DRIVERS OF THE GOLD PRICE SURGE

INTEREST RATES AND MONETARY POLICIES

Gold and interest rates have an inverse relationship in the short term. When interest rates are high, gold prices typically do not surge. Yet, between 2020 and 2025, gold defied expectations, climbing from $2,000 USD to today's high of $3,171 USD per ounce despite elevated interest rates.

Even more striking is that the Federal Reserve (Fed) will inevitably have to start cutting rates. If gold continues its steady climb even in a high-rate environment, a decline in interest income could accelerate the increase in gold prices even further.

But here’s the key: the Fed isn’t preparing to cut rates because inflation has fallen to the so-called 2% target. In reality, recent data suggests that inflation is sticking around. The real reason for the interest rate cut is the mounting burden of high borrowing costs and the approaching threat of stagflation in the U.S. economy.

We will likely witness developments where inflation remains persistent while interest rates decline. This combination could throw financial markets into turbulence, increasing the likelihood of stagflation. In this uncertainty, gold may surge even higher. Another major factor fueling gold’s rise is the aggressive accumulation by central banks worldwide. 

CENTRAL BANK PURCHASES

Governments encourage you to trust fiat money and invest in financial markets. What is interesting is that for a long time, developing countries such as China, India, Turkey, and Poland have been continuously expanding their gold reserves. The U.S. has also joined this race under Trump. Why do governments that want us to trust fiat money constantly accumulate gold?

Central banks accumulate gold because it is the ultimate form of real money—tangible, finite, and free from counterparty risk. Paper money cannot maintain its reliability forever if not backed by gold, and it loses value rapidly with inflation.

Although governments love to create inflation, no measure other than gold can secure economies during emerging geopolitical turbulence. Concerns about the long-term stability of the U.S. dollar have also led many countries to diversify their reserves.

Countries like Russia and China are increasing their gold accumulation to gain independence from U.S. economic control. This trend is directly proportional to the growing objection to U.S. influence on the global order. Alternative reserve currency projects that the BRICS countries have been planning for a long time cannot be supported and accepted without precious metals such as gold.

GEOPOLITICAL UNCERTAINTY AND TRADE TENSIONS

The world is experiencing a fundamental geopolitical realignment. As economic alliances fracture, market volatility is increasing. The heightened rivalry between major economic powers such as the U.S. and BRICS, ongoing conflicts, and trade restrictions have led investors to seek safe-haven assets like gold.

This new geopolitical realignment has two main facets: U.S.-China trade relations and US-Western Bloc trade relations. These new trade arrangements will have a long-lasting and significant impact on the emerging world order.   

U.S. TARIFFS ON CHINA

Let’s start with the intensified trade war between the U.S. and China. Both sides will continue to impose tariffs, hitting important industries such as technology, manufacturing, and raw materials. These trade wars between two giant economies will undoubtedly have consequences.

Trade restrictions can easily damage supply chains, increase production costs, and fuel inflationary pressure. Ultimately, as fiat currencies lose their purchasing power, gold will become a stronger hedge. China, the world's largest exporter, is actively reducing its use of the U.S. dollar and will create new trade agreements with countries where the U.S. has imposed tariffs. Since China is attempting to trade using the Yuan and local currency swaps instead of dollars, trade wars may put even more pressure on the U.S. dollar.

U.S. TARIFFS ON WESTERN ALLIES

The U.S. protectionist policies toward historical allies, including the European Union, Canada, Mexico, and Japan, are as serious as the tariffs on China. American measures will be met with retaliatory countermeasures that will disrupt global supply chains and cause further economic volatility. Canada has imposed a 25% tariff on approximately $30 billion USD of American products, with plans to raise that figure to $155 billion USD within weeks. Additionally, Ontario significantly increased the cost of exported electricity to the U.S. 

Meanwhile, Mexico’s President, Claudia Sheinbaum, expressed her preference to avoid retaliatory tariffs against the U.S. in response to Trump's broader tariff plans, though she did not rule them out. Mexico was spared in Trump’s latest global tariff rollout but still faces existing 25% tariffs on some exports. 

The European Union voted on April 9, 2025, to approve its first set of retaliatory measures to counter the tariffs imposed by the U.S. on steel and aluminum. The European Commission said duties would start being collected on a first tranche of tariffs on U.S. imports from April 18, with a second set of measures on May 15.

Gold is rising for a reason. In a world of uncertainty, offshore gold is your hedge against inflation, dollar decline, and political chaos. Your Plan-B should start with real assets.

CONCLUSION

The surge in gold prices is not just a short-term market reaction but a reflection of fundamental changes in geopolitics and global order. Recent political tensions and trade wars may begin a new era.  

For those crafting their offshore Plan-B, this situation should only confirm what smart investors have known for centuries: gold remains a tried-and-true vehicle for protecting your hard-earned wealth. Gold serves as a hedge against inflation, provides a safe haven against currency devaluation and is universally accepted as a store of value.

Investing in gold, especially through offshore options, should be a priority strategy to secure your financial future. If you haven’t built a Plan-B yet, now is the time to evaluate your options. There’s no better time to start than today.