ETF demand and Trump’s tariffs drive gold prices to new heights

According to precious metals analysts at Heraeus, US President Donald Trump’s trade tariffs will continue to drive bullion prices up. In a recent report, the company’s experts noted a decline in physical gold sales.

Data from the World Gold Council shows that the overall demand for bars and coins increased by 3% year-on-year in the first quarter of 2025. Analysts emphasized that gold price growth is largely driven by investor activity in exchange-traded funds (ETFs), particularly in the Asian region.

Heraeus experts also highlighted the impact of the current US trade policy on precious metal pricing. Specialists pointed to the recent decision by the Federal Trade Commission (FTC) against the introduction of tariffs by the presidential administration. In their view, ongoing uncertainty in financial markets and the trajectory of interest rates are likely to support the metal's prices.

Gold ended last week 2.57% lower than previous levels. There was a strong buying interest in bullions early in the week, with prices nearing $3,400 per ounce.