Investors are pouring money into gold at the fastest pace since the start of the Covid-19 pandemic, driven by fears over Donald Trump’s tariff plans.

On Tuesday, gold reached an all-time high of ,148.88 per troy ounce, indicating a substantial 19 percent increase since the beginning of the year.

The unit of measurement for precious metals such as gold, silver, and platinum is a troy ounce.

Investors are bracing for Trump’s expansive new tariff plans, set to be announced Wednesday—a day he has dubbed ‘Liberation Day.’ 

Wall Street stocks tumbled Monday amid uncertainty, following Trump’s extraordinary threat to impose 20 percent tariffs on most imports into the U.S.

Gold demand typically spikes in times of economic uncertainty as anxious investors seek safe havens,

Fears of a global trade war and concerns that Trump’s tariff policies could reignite inflation have driven prices higher.  

So far this year, investors have poured $19.2 billion into gold-backed exchange-traded funds (ETFs), according to the Financial Times. This marks the largest inflow since the pandemic, based on Standard Chartered data. 

A gold ETF allows investors to gain exposure to the gold market without having to own physical gold bars. 

Gold reached a record $3,148.88 a troy ounce on Tuesday, taking gains this year to 19 percent

‘Uncertainty is one of the main factors that has led to a renewed interest in gold,’ Krishan Gopaul, senior analyst at the World Gold Council, told the FT. 

‘There is a general risk-off sentiment in the market at the moment.’

Alongside tracker funds, tariff anxiety has also led to a huge surge in physical gold bars being flown into New York, according to the outlet. 

As the price of gold has spiked by 19 percent this year, the stock market has tumbled.  

The benchmark S&P 500 index, which tracks the 500 largest companies in the US, is down 4.5 percent this year, AP reported.

Gold futures also reached a record in trading Monday, hitting close to $3,157.40 an ounce. 

Interest in buying gold typically spikes when investors become anxious – and there has been a lot of economic turmoil in recent months.

The heaviest uncertainty lies with Trump’s escalating trade war. The President’s on-again, off-again new levy announcements and retaliatory tariffs from some of the nation’s closest traditional allies have created a sense of whiplash for both businesses and consumers – who economists say will foot the bill through higher prices.

Interest in buying gold can rise sharply in times of uncertainty, as anxious investors seek safe havens for their money

Investors are bracing themselves for the President’s expansive new tariff plans, which are due to be announced on Wednesday, a day he has dubbed ‘liberation day’

Confidence began to slide at the start of the year for both US households and businesses due to fears of inflation and tariffs. 

Those worries seem to only be worsening, as consumer confidence has been eroding for several months.

Over the last year, analysts have also pointed to strong gold demand from central banks around the world amid geopolitical tension, including wars in Gaza and Ukraine, AP reported.

Advocates of investing in gold call it a ‘safe haven’ – arguing the commodity can serve to diversify and balance your investment portfolio, as well as mitigate possible risks down the road. 

Some also take comfort in buying something tangible that has the potential to increase in value over time.

But critics say gold is not always the inflation hedge many say it is, and it can be a volatile asset.

The Commodity Futures Trade Commission previously warned people to be wary of investing in gold. 

Precious metals can be highly volatile, the commission said, and prices rise as demand goes up.

This means ‘when economic anxiety or instability is high, the people who typically profit from precious metals are the sellers,’ it said.