Tariffs Triggering a Gold Price Surge? What You Need to Know (Especially if You’re New to Gold)
Have you been hearing about tariffs and wondering how they will impact the gold prices? Let us spill the beans on all you need to know. If you are a newbie in the gold market or as an investor, it is totally normal to be somewhat confused by all the jibber-jabber going on about tariff trade wars, the gold price fluctuation and even more importantly, how it will influence your decisions to purchase the gold you want. But fret not, by the end of this article, we at Starlight Jewellery promise, you will have answers to all of these questions.
As a highly sought-after, rare precious metal, gold has also been a stunner in the global market; however, lately, the spotlight has only gotten brighter. With trend and price predictions in a world which is standing back up again from an excruciating pandemic, everyone is looking to invest in something worthwhile, such as this stunning metal, gold. At a time when all attention is on the gold price, whichever decision you want to make, it is best to know all the facts before you jump headfirst. So let's get started.
Why Does the Gold Price Keep Fluctuating?
Think of Durian in Singapore for a minute. Due to various factors, such as high demand, seasonal variations, and supply issues, the price of durian often fluctuates. Similarly, the price of gold tends to be influenced by factors that circulate the market directly and indirectly. Here is a simple breakdown of what affects the price of this beautiful metal.
● Supply and Demand on the gold price
With scarce commodities such as gold, supply and demand can be quite a game of tug of war. If demand is high, prices tend to rise as well. However, if the gold supply is abundant in the market, prices will decrease due to a low disparity between supply and demand. According to researchers, the annual growth rate of gold demand is about 6.38%, which is greater than the available gold reserves around the world, which only increase 0.84% per year.
● Inflation and interest rates on the gold price
Inflation, as you would expect, can have a hiking effect on gold prices. As the cost of things increases over time, gold can also be valued at a higher monetary value. From a purchasing point of view, this may seem daunting, but it's a better time to resell or liquidate your gold investments. Interest rates, on the other hand, have an inverse relationship with gold prices; when interest rates increase, the price of gold decreases.
● Investor sentiment on the gold price
Yes, you read that right, gold prices can also fluctuate depending on how most investors feel about it. A positive attitude towards investing in this precious metal drives the price of gold higher as investors flock to secure their resources in safe havens. This is especially true in terms of economic uncertainty, as it is considered a low-risk form of investment that stands the test of time.
Tariffs are no different from the factors we have discussed when it comes to shaping gold prices in the market in 2025. So, now that you have a foundational understanding of the price of gold and its sensitivity, let's get to the real deal.
What Are Tariffs – and Why Do They Matter to Gold Buyers.
A Quick Explanation of Tariffs
Tariffs, in the simplest definition, are taxes imposed on imported goods; this is done by the government of the particular country. While ideally it is typically done to prioritise the local market or ease the competition for local vendors to strengthen the national economy, sometimes countries can impose tariffs in a trade war to damage each other's economies. Imagine you are fond of a specific handbag brand that is imported from overseas; while you would still be able to find this exquisite luxury handbag, with tariffs, you will have to splurge on more than usual to purchase one next time.
How Tariffs Create Economic Ripples
As tariffs are imposed, the cost of goods can rise. Singapore currently imports a significant amount of goods that contribute to both the social and economic needs within the country. These can range from mineral fuels, oils, plastics, electronic equipment, and transportation devices to precious, beautiful stones that decorate the wide collection of locally crafted jewellery. With traffic coming into the picture, the cost of these products can increase, making them less affordable to the working class.
With the rise in prices of everyday things, the fear of inflation can increase among society. With the early risk assessment, investors often seek safe havens to invest in to stay resilient against the instability caused by inflation in a country. As a result, gold, as a steady form of investment, tends to attract investors to rely on it for future financial stability. This demand can, in return, hike up gold prices in the market. Additionally, if gold is imported into a country to meet market demand, tariffs will cause prices to rise even before the fear of inflation is spread. Therefore, tariffs can both directly and indirectly model the gold price in a market.
Do Tariffs Really Trigger a Gold Price Surge? Let’s Look at the Facts
The tale of tariffs has been around for centuries, dating back to ancient civilisations such as ancient Greece and Rome. While the initiatives have served for purposes such as defending the domestic goods market and swaying trade dynamics, trade wars also have had and still have the power to tip the economic scales. To understand this best, it is ideal to take a look at what has happened so far between the presence of tariffs and gold prices.
In 2019, the trade conflicts between the US and China escalated to the point that both countries imposed tariffs on each other's imported goods to weaken their opponent's economy compared to their own. This resulted in the gold price rising to a level not seen in six years. In 2025, with the Trump administration announcing a shocking 104% tariff rate on goods imported from China and in response, China imposing an 84% tariff rate on US imported goods, increasing global tensions dramatically.
As capital tends to sway towards the safety of the US currency in terms of such global economic instability, the demand for gold increases as an appealing form of secure investment. In 2025, the gold price is predicted to follow historical patterns of economic safety, acting as a safe haven rather than a commodity in the market.
What This Means If You’re New to Gold Investing or Buying Jewellery

Should You Be Worried About Buying Gold When Prices Rise?
As they say, you have to look both ways before crossing a road; you have to consider both the advantages and the disadvantages of purchasing gold when the prices are higher than usual. This is how you make a wise decision with confidence in yourself and your goal.
Cons of buying or investing in gold during a surge
Weighing the cons first, buying your gold when the gold price is high means you will have to spend a little more than you would at other times. As demand is high, the risk of counterfeit gold products can be greater; therefore, being careful and vigilant will be necessary. This means you will have to double-check the certificates and hallmarks to ensure the gold or gold jewellery you are buying has iron-clad authenticity. For example, if you are purchasing gold in Singapore, it must have been hallmarked by the Singapore Assay Office (SAO).
Pros of buying or investing in gold during a surge
Looking at the positives, purchasing gold jewellery or investing in gold when prices are high means you have the opportunity to diversify your portfolio, strengthening the foundation of your resources. This can also be a great option for staying resilient against inflation, which is a possibility with the emergence of tariffs, as we discussed earlier. Moreover, there is a possibility that the gold price will continue to rise. In that case, it would be wise to invest in or buy gold now with the aim of selling it later. With tariffs and inflation around the corner, this could happen sooner than you expect.
What Kind of Gold Can You Buy?
You have the flexible options to purchase either physical or digital gold. Physical gold refers to forms such as gold coins, bars, and gold jewellery, while digital gold includes gold futures, gold bonds, and ETFS. Compared to physical gold, digital gold has low transaction costs in the market; however, physical gold gives you more control and privacy over your investment.
Frequently Asked Questions
● Is it safe to invest in gold in 2025?
Gold in the 2025 market has been identified as a safe haven for investment against economic uncertainty.
● Will tariffs continue to affect gold prices this year?
While tariffs can influence the gold price, as global tensions ease, gold prices may decrease.
Final thoughts,
Now that you are aware of the gold price and how it is affected by various factors, including tariffs, we believe you have the knowledge to make an informed decision about buying your favourite gold, whether it is physical, like jewellery, or digital, like an ETF. That being said, be sure to monitor and continue learning about the gold price from reputable sources to increase your knowledge and have an advantage as a beginner in the gold market. This is your call to shop and invest wisely!
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