Why To Invest In Gold Beyond Tariff Uncertainty?

Gold has resumed its upswing after blazing past $3,200 mark on the backs of rising tariff-war tensions, especially between top global economies- the U.S and China. In times of economic uncertainty, investors seek refuge in assets that offer stability, protection against inflation threat, and a safe harbour during times of market crisis and uncertainty. Historically, gold has never crashed and continues to be seen as wealth itself given its resilience, and intrinsic worth. From an investor stand-point lets look at the six key reasons why investing beyond the tariff uncertainty that has supported the yellow metal's rally this year.

Gold Prices Ripe For Continued Gains?

Central banks bullish on gold: The trend of central banks purchasing gold has been cemented as a method to diversify their reserves. In 2025, central banks for the third consecutive time bought gold beyond 1,000 tonnes. In March 2025, China reported strong gold purchases for the fifth consecutive month in March 2025.

Exchange rate fluctuations: Gold remains a sweet spot in China, Japan, and Europe with the dollar index trading at three-year-low.  

Geopolitical uncertainty: The rise in demand for commodities like gold are on the rise given uncertainty in geo-political scenarios like the ongoing Russia-Ukraine war, and an unsuccessful Israel-Hamas ceasefire.

Possible US Fed rate cuts: With the U.S inflation trending lower, it yet another good new for gold investors. The US Federal Reserve is expected to cut interest rates two more times in 2025, which supports the bullish case for gold.

Panic Striken market: VIX or what investors popularly refer to as Wall-Street's panic index recently soared to to 60.13. This is the highest closing level since the COVID-19 pandemic five years back. Volatility has risen, and investor portfolios have suffered—until its gold.

China ETF inflows: Chinese gold ETFs saw record inflows of $1 billion, with buying continuing in 2025. Global ETF inflows have been rising since 2024 and are expected to remain strong.