In recent weeks, the global gold market has been on a dramatic rise, largely influenced by President Donald Trump’s tariff policies. As fears of trade wars and geopolitical instability intensify, investors have flocked to gold, a traditional safe haven, pushing its price to record highs and essentially “making gold great again”.
And who can blame them? With all this uncertainty swirling around, gold’s safe-haven reputation is proving to be more reliable than ever, making this yellow metal a key asset to help “Trump-proof” your portfolio.
The Impact of Trump’s Tariffs on Global Markets
President Trump’s aggressive stance on tariffs has created ripples through global financial markets. Since taking office in January 2025, he has imposed a 10-25% tariff on steel and aluminum imports, escalating tensions with major trading partners like China, Mexico, and Canada, with further plans for tariff increases on such imports. These moves have fueled concerns about a potential global trade war, with investors scrambling to shield their wealth from market volatility, and guess what? Gold’s stability is looking more attractive than ever.
On top of that, the U.S. Federal Reserve is also playing a role in the market’s reaction. Officials like Michelle Bowman are calling for more inflation control before cutting interest rates, and, combined with Trump’s unpredictable tariffs, you know what that means: more uncertainty, more volatility, and, you guessed it, more demand for gold.
UAE Gold Price Surge
For context, in the UAE (as of February 18, 2025), 24-carat gold saw a rise of AED 1.25, reaching AED 350.75 per gram. Similarly, 22-carat gold increased by AED 1.25 to AED 326.25 per gram, while 21-carat gold went up by AED 1.25 to AED 313.00 per gram. Even 18-carat gold experienced a slight increase of AED 1.00, reaching AED 268.25 per gram. These increases align with global trends as spot gold rose by 0.1% to $2,898.99, and U.S. gold futures gained 0.4%, reaching $2,912.60.
Why Gold? The Safe-Haven Appeal
Gold hardly needs a PR campaign – it has historically been a go-to asset in times of crisis. Unlike national currencies, which can lose value due to inflation or poor economic management, gold maintains its intrinsic value as a “currency”, making it a highly liquid and reliable store of wealth.
In times of political or economic uncertainty, much like the current climate stirred by Trump’s tariffs, gold’s value tends to climb. As the World Gold Council highlights, “Gold is a highly liquid asset, which is no one’s liability, carries no credit risk, and is scarce, historically preserving its value over time.”
A Look Back at Gold’s Price Surges
This isn’t the first time we’ve seen gold prices spike in response to global turmoil. In 2008, during the housing crisis, gold prices broke the $1,000 per ounce barrier for the first time, eventually peaking at nearly $1,900 in 2011. More recently, the geopolitical instability following Russia’s invasion of Ukraine caused a similar surge, with gold reaching $2,070 per ounce in March 2022.
The Current Gold Price Surge: Is This the New Normal?
As of the latest data, gold has reached an all-time high, surpassing $2,900 per ounce and even nearing $2,943 in recent trading sessions. This spike has been driven by a combination of factors, including weakening US economic data, a declining dollar, and the continuation of Trump’s tariff policies. Experts believe that as long as trade wars keep brewing and geopolitical tensions simmer, gold’s upward climb could be far from over.
The Broader Economic Context
While gold isn’t the only asset to benefit from this uncertainty, it remains one of the most popular. The US dollar, for example, has weakened in response to the economic turbulence caused by tariffs, making gold, priced in dollars, cheaper for investors holding other currencies. At the same time, many central banks are increasing their gold reserves, signaling that global demand for the metal remains strong.
For example, Goldman Sachs has increased its gold price target to $3,100 per ounce by the end of 2025, citing structurally higher central bank demand. Similarly, UBS has updated its forecast, projecting that gold could reach over $3,200 before stabilizing at elevated levels.
What Can Investors Do?
While gold might quite literally be the shiny object right now, real estate remains another strong, tangible asset that can offer both stability and growth, especially for those looking to diversify their investment portfolios. At SmartCrowd, we enable you to invest in Dubai’s booming real estate through fractional ownership, which means you can gain exposure to the property market without breaking the bank.
Just like gold, real estate can act as a hedge against inflation and economic uncertainty. And while the price of gold may be volatile, the real estate market, especially in prime locations like Dubai, has shown long-term stability and capital growth potential.
By investing with SmartCrowd, you can be part of a growing, secure asset class that offers passive income potential and the chance for capital appreciation, especially in uncertain times.
Interested in starting your journey? Explore our latest investment opportunities on SmartCrowd today and start building a Trump-proof portfolio with real estate.
Disclaimer: This blog is intended solely for educational purposes and shouldn’t be treated as financial advice. We suggest you always conduct thorough research, perform your own due diligence, and consult with financial advisors to assess any real estate property against your own financial goals.
