Gold Investment Outlook in April 2025 Amid U.S. Tariff Policy Changes

The gold market in 2025 is navigating turbulent waters. A major development on April 13, 2025 saw the United States, under President Donald Trump, lift the 24% “reciprocal” tariff on Malaysian imports – a relief for Malaysia after being targeted by Trump’s aggressive trade measures. Meanwhile, steep tariffs on Chinese goods – originally 34%, now raised even higher – remain in place, keeping alive trade tensions between the world’s two largest economies ( Skrine - Advocates & Solicitors ) (Gold hits record high as US-China trade war intensifies, dollar weakens | Reuters). This blog post delves into how Trump’s tariff policy shift is influencing gold price today, and what it means for gold investment opportunities globally and in Malaysia. We’ll also explore various ways to invest in gold (from gold ETFs to gold bullion and IRAs) and outline the benefits and risks of gold in the current climate.

Trump’s Trade Tariffs and the April 13 Policy Reversal

A Brief Recap: In early April 2025, President Trump shocked markets with sweeping “reciprocal” tariffs as part of his trade policy. He imposed a baseline 10% tariff on all countries’ imports to the U.S. starting April 5, and elevated tariffs for 60 “worst offender” countries thereafter ( Skrine - Advocates & Solicitors ). Malaysia was hit with a 24% tariff (approximately half of Malaysia’s purported 47% tariff on U.S. goods) ( Skrine - Advocates & Solicitors ), and China faced a 34% tariff under this plan ( Skrine - Advocates & Solicitors ). These tariffs took effect on April 9 and threatened to escalate trade wars globally.

The April 13 U-Turn: Mere days after implementation, Trump made a sudden reversal. On April 13, he announced a 90-day pause on the higher tariffs for countries that did not retaliate (How the World Is Reacting to Trump’s Tariff Reversal | TIME). This effectively lifted the 24% tariff on Malaysian imports, reducing it back to the 10% baseline during the pause (Malaysia to await tariffs clarity before revising outlook, central bank chief says | Reuters). Malaysian officials welcomed the reprieve, as it eased a significant strain on Malaysia’s export economy (How the World Is Reacting to Trump’s Tariff Reversal | TIME). However, the U.S. doubled down on China’s tariffs – raising duties on Chinese goods to over 100% (from an initial 34%) in retaliation for China’s counter-tariffs (Gold hits record high as US-China trade war intensifies, dollar weakens | Reuters). In short, most U.S. trading partners got tariff relief, but China-U.S. trade tensions intensified.

Market Reaction: Trump’s tariff flip-flop initially jolted global markets. Investors had braced for a protracted tariff war, then suddenly had to adjust to a temporary truce for many countries. Malaysia’s central bank noted it would wait for clarity on the tariff situation before revising economic forecasts (Malaysia to await tariffs clarity before revising outlook, central bank chief says | Reuters), highlighting how crucial these trade policies are for economic planning. By not retaliating and engaging in diplomacy, Malaysia avoided further escalation and potentially positioned itself as an alternative trade partner while China remains under heavy tariffs. This backdrop sets the stage for gold’s behavior, as trade policy uncertainty often drives moves in safe-haven assets like gold.

Impact on Gold Prices and Global Gold Markets

Volatility and Record Highs: Gold prices have experienced significant volatility in response to these tariff developments. In early April, gold was already on an upward trajectory, fueled by investor concerns over economic implications of new tariffs and robust central bank demand for gold (Gold Price Forecast April 2025: Time to Buy or Sell? | EBC Financial Group). On April 10, as the U.S.-China trade war escalated (with China’s tariff hiked to 125%), gold jumped nearly 3% to an all-time high, reaching about $3,171 per ounce (Gold hits record high as US-China trade war intensifies, dollar weakens | Reuters). This surge was driven by a flight to safety – a weaker U.S. dollar and trade war fears sent investors piling into the precious metal (Gold hits record high as US-China trade war intensifies, dollar weakens | Reuters). For context, gold is up roughly 19% year-on-year, an exceptional run that saw it climb from the mid-$2,600s in early 2024 to over $3,100 in 2025 (Gold Price Forecast April 2025: Time to Buy or Sell? | EBC Financial Group).

However, the ride has been bumpy. Immediately after Trump’s initial tariff bombshell, there was a brief sell-off in gold alongside equities, as some investors liquidated holdings to raise cash amid the uncertainty (BERNAMA - Gold Futures Close Lower Following Trump’s Tariff Bombshell). Prices pulled back from their peaks – for instance, gold dipped to around $3,012/oz by April 7 after the initial frenzy (Gold Price Forecast April 2025: Time to Buy or Sell? | EBC Financial Group). But with the tariff policy now partially eased for U.S. allies (and hopes that trade talks might follow), gold has stabilized near historical highs. As of April 13, the gold price today remains around the $3,100 per ounce level, reflecting sustained safe-haven demand tempered by short-term profit-taking (BERNAMA - Gold Futures Close Lower Following Trump’s Tariff Bombshell).

Global Market Influences: The ongoing hefty tariff on Chinese goods continues to inject uncertainty into markets. Tariffs act as a tax on trade, which can slow global growth and weaken currencies, but they can also raise inflation (as import prices climb). These opposing forces are both relevant to gold. On one hand, slower growth and market turbulence boost gold’s appeal as a safe-haven asset, especially when equities falter. On the other, higher inflation and a weaker dollar – possible outcomes of protracted tariffs – also make gold attractive as an inflation hedge and store of value. In this case, U.S. consumer prices actually ticked down in March, but analysts warn that Trump’s intensified China tariffs tilt inflation risks upward going forward (Gold hits record high as US-China trade war intensifies, dollar weakens | Reuters).

Notably, the U.S. dollar slipped over 1% when Trump paused tariffs for allies and markets began betting on Federal Reserve interest rate cuts to counter a potential economic slowdown (Gold hits record high as US-China trade war intensifies, dollar weakens | Reuters). A softer dollar tends to lift gold prices, since gold is dollar-denominated. All these dynamics have kept gold in the spotlight. As one market analyst observed, gold has “regained its safe-haven appeal” and is on track for new highs, but any swift trade deals or resolution of tariff disputes could cut its rally short (Gold hits record high as US-China trade war intensifies, dollar weakens | Reuters). In other words, if the U.S. strikes new trade agreements (for instance, making peace on tariffs with China or others), investor risk sentiment could improve and some money might flow out of gold, pressuring its price. Likewise, signs of higher interest rates (fewer Fed rate cuts than expected) could strengthen the dollar and pose a headwind for gold (Gold hits record high as US-China trade war intensifies, dollar weakens | Reuters).

Malaysian Gold Market Perspective

For Malaysia, the lifting of U.S. tariffs is a welcome relief that improves the economic outlook. Avoiding a 24% export tariff helps Malaysian industries (electronics, palm oil, etc.) maintain U.S. market access ( Skrine - Advocates & Solicitors ). This could indirectly benefit Malaysia’s currency, the ringgit. In fact, there is speculation that the ringgit may strengthen amid easing trade tensions for Malaysia (BERNAMA - Gold Futures Close Lower Following Trump’s Tariff Bombshell). A stronger ringgit can make gold imports cheaper, potentially moderating local gold prices. Malaysian gold investors might have noticed that during the height of the tariff scare, the ringgit dipped, amplifying gold’s rise in MYR terms – but as the currency stabilizes, local gold prices could cool off slightly.

That said, Malaysian investors remain part of the global gold market and are influenced by international prices. Gold’s allure as a safe haven is well appreciated in Malaysia, where investing in gold (through jewelry, coins, or bank gold accounts) is a common way to preserve wealth. The gold investment trend in Malaysia could stay strong given the backdrop of global uncertainty. With Trump’s tariffs on China still a wildcard and regional supply chains in flux, investors in Malaysia will likely keep some gold in their portfolios as a hedge against volatility. The central bank’s wait-and-see stance (Malaysia to await tariffs clarity before revising outlook, central bank chief says | Reuters) (Malaysia to await tariffs clarity before revising outlook, central bank chief says | Reuters) suggests that uncertainty is not fully gone. Thus, Malaysians, like other global investors, continue to view gold as a strategic asset in 2025’s unpredictable trade environment.

Gold Investment Opportunities in 2025

Whether you’re a seasoned investor or new to gold, 2025 offers multiple avenues to gain exposure to the precious metal. Here’s a breakdown of current gold investment opportunities – each with its own characteristics:

• Gold ETFs: Exchange-Traded Funds that hold physical gold and trade on stock exchanges. A gold ETF tracks the price of gold, so its shares rise and fall with gold’s market value ( What is a gold ETF? - CBS News). ETFs like SPDR Gold Shares (GLD) allow you to invest in gold without handling the metal directly. They’re highly liquid and can be bought or sold online through brokerage accounts, making it easy to buy gold online in paper form. Fees are low, but you don’t own the gold outright – you own shares of a fund. For many, gold ETFs offer a convenient balance of simplicity and cost-effectiveness.

• Physical Gold Bullion and Coins: For those who want tangible assets, buying physical gold is the classic route. Gold bullion usually refers to gold bars of high purity (e.g. 99.9% fine) in various weights (1 oz, 1 kg, etc.), while gold coin investment involves buying legal tender or commemorative coins (such as the American Eagle, Canadian Maple Leaf, or Malaysian Kijang Emas coins). You can buy gold online or at dealers in the form of bullion and coins, taking delivery or arranging secure storage. Physical gold gives you direct ownership – a real asset you can hold – which appeals to those who distrust paper assets. However, it comes with considerations: storage costs, insurance, and a bid-ask spread (dealers charge a premium over spot price). It’s best for long-term holders who value having a hard asset. Some coins may also carry collector premiums, but generally their value tracks gold content.

• Gold IRAs: A gold IRA is a special individual retirement account that holds physical gold or other precious metals instead of (or in addition to) stocks and bonds. These accounts are popular in the U.S. for investors who want the tax advantages of an IRA while holding gold as a hedge. The gold in a Gold IRA must be stored with an IRS-approved custodian. The benefit is that any gains can grow tax-deferred (or tax-free in a Roth IRA), and it provides diversification for retirement savings (Why you should open a gold IRA for 2025 - CBS News). Opening a gold IRA can protect against inflation and economic downturns as part of a long-term strategy ( Why you should open a gold IRA for 2025 - CBS News). However, note that there are fees for setup, storage, and management, and not everyone is eligible or in need of a dedicated gold IRA unless you specifically want physical metal in your retirement plan.

• Gold Stocks and Funds: If you’re comfortable with equities, you can gain indirect exposure through gold mining stocks or mutual funds/ETFs that hold mining companies. The idea is that the best gold stocks (for example, shares of major mining companies) often leverage gold price movements – when gold rises, miners’ profits can soar, potentially giving stock investors an even bigger upside. Investing in mining stocks or a miners ETF introduces more variables (company management, mining costs, etc.), so it’s riskier and more volatile than gold itself. It’s crucial to research and pick solid companies if you go this route. Many investors prefer diversified funds to mitigate the risk of any single miner. This approach can be lucrative but remember that it doesn’t provide the same safe-haven stability as holding gold directly; it’s more of a speculative investment on the gold industry.

• Gold Investment Accounts: In some regions, banks offer the option to invest in gold through savings-like accounts. For example, in Malaysia, several banks provide a gold investment account where you can purchase and hold gold in fractional amounts (in grams) on an account ledger, without taking physical delivery. You essentially own a certain quantity of gold that the bank holds (often backed by the bank’s reserves). These accounts allow easy transactions – you can buy or sell gold holdings via online banking, much like you would transfer money. They offer convenience and security (no need to store gold yourself) and often relatively low spreads. However, they typically do not pay interest (gold itself has no yield), and you must trust the institution’s credibility. Such accounts are a modern way to buy gold online and are useful for gradually accumulating gold or for those who want liquidity.

Each of these avenues – whether it’s a gold ETF, bar, coin, stock, or account – caters to different investor preferences. Many investors even use a combination (for instance, holding some physical gold for the long term while trading ETFs for short-term moves).

Benefits of Gold Investment in the Current Climate

Gold has earned its reputation as a strategic asset for uncertain times. In the context of 2025’s trade turbulence and economic crosswinds, here are key benefits of investing in gold now:

• Safe-Haven and Diversification: Gold acts as a hedge when markets turn volatile. It often gains value during economic and political upheavals, helping offset losses in stocks or other assets ( Does gold investing still make sense? Pros and cons to know for 2025 - CBS News). In today’s climate of tariff wars and geopolitical tensions, holding gold can protect your portfolio against unexpected market declines and provide peace of mind. Its low correlation with equities means it diversifies risk effectively – when other investments fall, gold frequently rises or holds value.

• Inflation Hedge and Currency Buffer: With tariffs potentially stoking inflation (through higher import costs) and central banks pumping liquidity, investors worry about currency debasement. Gold is a time-tested hedge against inflation – as the cost of living rises and paper money loses purchasing power, gold tends to appreciate or at least preserve value ( Does gold investing still make sense? Pros and cons to know for 2025 - CBS News). In fact, gold’s surge above $3,000/oz reflects how it’s maintaining real value amid global inflationary pressures. Likewise, if the U.S. dollar weakens (as it did recently), gold becomes cheaper in other currencies, often boosting demand. Thus, gold can safeguard wealth against currency fluctuations resulting from trade disputes or monetary policy shifts.

• Strong Recent Performance: Gold’s momentum has been strong. It climbed over 30% in the past year ( Does gold investing still make sense? Pros and cons to know for 2025 - CBS News), outperforming many stock indices. Even with some volatility, it is one of the best-performing assets of the year. Some experts expect the trend to continue, forecasting gold could stay above $3,000 and even push higher by year-end ( Does gold investing still make sense? Pros and cons to know for 2025 - CBS News). This rising trajectory, supported by central bank buying (central banks globally added large volumes of gold to reserves in 2024), indicates a positive outlook. For investors, this performance underscores gold’s ability to generate returns, not just sit idle.

• Multiple Ways to Participate: As noted, there are many ways to get involved in gold – physical, ETFs, etc. This flexibility is a benefit in itself: you can choose the method that fits your goals and comfort level. Gold investing is no longer only about buying coins from a shop; you can easily buy gold online in various forms. The advent of gold ETFs, low-cost online dealers, and gold accounts means anyone can allocate a portion of their portfolio to gold with relative ease ( Does gold investing still make sense? Pros and cons to know for 2025 - CBS News). This ease of access, combined with gold’s resilience, makes it an attractive addition for both new and seasoned investors looking to bolster their portfolios against uncertainty.

• Portfolio Insurance: Financial advisors often refer to gold as a form of insurance. In the event of a severe market downturn, financial crisis, or escalation of the trade war (or even other crises), gold’s value could spike when other assets are tanking. Holding some gold can provide liquidity when you might need it most – you could sell some gold to raise cash without crystallizing losses in stocks, for example. This benefit is particularly relevant in the current climate, where the range of outcomes (from successful trade negotiations to a full-blown trade war or even a recession) is wide. Gold helps ensure you’re prepared for the worst-case scenarios.

Risks to Consider When You Invest in Gold

While gold is a compelling asset, it’s not without risks and downsides. Before increasing your gold investment, keep these points in mind:

• No Yield or Cash Flow: Gold is a sterile asset – it doesn’t produce earnings, interest, or dividends. Unlike stocks (which may pay dividends) or bonds (which pay interest), gold’s return comes solely from price appreciation. This means if gold prices stagnate or fall, there’s no auxiliary income. In a prolonged stable period, gold could underperform income-generating assets. Investors must be comfortable holding an asset that only pays off when you sell at a higher price ( Does gold investing still make sense? Pros and cons to know for 2025 - CBS News). For those needing regular income, gold won’t provide it.

• Short-Term Volatility: Despite its long-term stability, gold can swing sharply in the short run. The events of early April 2025 are proof – we saw gold plunge 3% in a matter of days, then rally to new highs. If you have a short investment horizon or low risk tolerance, these swings can be unsettling. Gold prices can pull back quickly if, for instance, a major trade deal eases investors’ fears or if traders sell gold to cover losses elsewhere ( Does gold investing still make sense? Pros and cons to know for 2025 - CBS News). There’s no guarantee that last year’s 30% rise will continue unabated; a lot of good news (like resolving tariff disputes or stronger economic growth) could cause gold to retreat. Timing risk is thus a factor – entering near record highs could mean near-term downside if the market corrects.

• Opportunity Cost in Strong Economies: If the global economy stabilizes and grows, other investments might outperform gold. For example, if a U.S.-China trade truce is reached and economies roar back, stocks and other risk assets could surge, potentially making gold less attractive. Also, if central banks decide to raise interest rates or delay cutting them, bond yields would rise, offering a competitive safe investment against gold ( Does gold investing still make sense? Pros and cons to know for 2025 - CBS News). In such scenarios, investors might prefer assets that produce returns (interest or dividends), leaving gold lagging. Essentially, gold shines brightest during distress; in a booming or high-rate environment, it can lag behind. You risk missing out on better opportunities if you allocate too much to gold when conditions improve.

• Liquidity and Logistics (for Physical Gold): This mainly applies if you hold physical bullion or coins. Selling large amounts of physical gold can take more effort (finding dealers or buyers, assay for purity, etc.) compared to the instant sell of an ETF. There are also costs like dealer premiums when buying and discounts when selling, which can eat into returns. Storing gold securely, especially significant quantities, may require paying for vault services or insurance. While not a risk in the market sense, these practical considerations mean physical gold can be slightly less convenient and profitable if not managed efficiently. However, modern solutions like gold accounts and ETFs can mitigate this if liquidity is a priority.

• Regulatory and Tax Considerations: Different countries tax gold differently. In the U.S., for example, physical gold sales can be taxed at a higher capital gains rate (as collectibles) and buying or selling may require reporting. In Malaysia, buying physical gold jewelry incurs a GST or sales tax unless you use specific accounts. Changes in regulations (like import duties on gold, export restrictions, or new taxes) could impact returns. It’s important to be aware of any gold investment account fees or rules, and for Gold IRAs, the IRS regulations (penalties for early withdrawal, required minimum distributions, etc.). These factors aren’t deal-breakers but are part of the risk-return calculus.

Bottom Line: Investing in gold in 2025 offers both security and challenges. The removal of U.S. tariffs on Malaysia and ongoing tariffs on China create a nuanced backdrop – there is hope for easing tensions, yet a lot of uncertainty persists. Gold has proven its worth as a safe haven during the recent tariff turbulence, and it continues to be a favored asset as investors seek stability. By understanding the various ways to invest (from gold ETFs to gold coin investment options) and weighing the benefits against the risks, you can make an informed decision on how gold fits into your portfolio.

As always, balance is key. Gold can be a valuable component of a well-diversified strategy, especially in an era of unpredictable trade policies and market volatility. Whether you decide to increase your gold holdings or just keep a watchful eye on the gold price today, staying informed will help you capitalize on opportunities and safeguard your wealth in these uncertain time