Gold prices are surging, but what’s driving this momentum? With President Trump’s new policies sparking inflation concerns and global economic uncertainty, investors and central banks are turning to gold as a safe haven. In this video, we dive into the factors pushing gold’s rise, from tariffs and overvalued stock markets to central banks buying gold at record levels. Discover how these trends could impact your financial future and why now is the time to prepare.

CHAPTERS:
00:00 Gold Prices Surge After Trump’s Policies
01:09 Tariffs and Inflationary Pressures
02:16 Rising Uncertainty and Market Volatility
03:22 The Overvalued Stock Market and Trade Wars
04:29 Central Banks Buying Gold at Record Levels
06:01 Why Gold is the Ultimate Safe Haven
07:04 Protect Yourself with Gold and Silver

TRANSCRIPT:

00:00
Gold prices continue to surge following President Trump’s day-one promises: “We will tariff and tax foreign countries to enrich our citizens.” But with his presidency bringing so much optimism for the stock market, what is really driving gold’s price rise, and how high can we expect it to go? Well, let’s get into it.

00:37
Trump threatens 25% tariffs on Mexico and Canada on February 1st, punting day-one pledge. What they mean by “punting day-one pledge” is that, of course, he promised this would happen on his first day in office. He has since shifted that timeline out, but only by a week and a half. And if you’ve been following anything that the president has done in the last three days, it is crystal clear that this is a man on a mission who feels the clock ticking on the next four years and is intent on delivering on his pledges.

01:09
The reason why this is so important is because it is widely agreed upon that tariffs are going to be inflationary. Whether or not you agree with an America First trade policy, tariffs are going to raise the price of imported goods, which inevitably get passed along to the consumer. If you look at this, plus tax cuts, plus mass deportation—again, regardless of how you feel about the policies themselves—they are all inflationary.

01:45
It might not happen overnight, but the effects of this will be felt, which is why we are also seeing this week the 10-year Treasury yield fall as investors digest Trump’s return to the White House. Now, the Treasury yield falls when investors are moving into safer assets. So what this tells us is that it’s not just inflation concerns—because we know that gold always goes up when inflation concerns go up since it is a safe store of value, unlike fiat currency—but also that investors are concerned about increased volatility.

02:16
There might be a lot of hope right now around policy promises or how they’re going to play out, but ultimately the truth is there’s a lot of uncertainty as well. Uncertainty around trade, government spending, and global relations—all things that could have a serious impact on market volatility as well as all assets that are dollar-denominated.

02:50
If we look at the stock market today, I’ve talked about this before: it is extremely concentrated. Concentrated at levels we haven’t seen since the 1970s. We know a handful of stocks are driving the majority of growth, and all of this growth we’re seeing is overvalued. It’s just financialization and speculation. It’s not based on real tangible growth, meaning that all it’s going to take is one single spark to ignite a collapse.

03:22
So what’s going to be that spark? Well, 25% tariffs could ignite an escalating trade war, and with how intertwined our global economies are today, that could absolutely be the thing. It could be anything—I don’t have to tell you there are numerous threats right now to the system—but this could be one of them. Even if it’s not, we know that an escalating trade war is going to bring more inflation at a time when we expect the United States government is probably going to continue to spend, not cut back.

03:51
Meaning we could see inflation continue to rise at a far more accelerated pace. Those in power, the wealthy elite, they already know all this. They know what’s coming. Just look at central banks. Look at what they’ve been doing: buying gold at record quantities.

04:29
Central banks globally bought a staggering $7 billion worth of gold—the most in 73 years year-over-year. Why do you think that is? We can sit here and hate on central banks all day long, but I’ll tell you one thing: they’re not stupid. They know what they’re doing out there.

04:51
I read the other day that gold’s global market cap to world GDP ratio has reached a record 16.7% at the end of 2024. To put this in perspective, that has doubled in the last 10 years and quadrupled since 2001. That is significant.

05:32
This is intentional stockpiling of gold because these central banks understand that the Dollar’s time is limited. As central banks are ditching their dollar reserves and moving away from the dollar because its purchasing power is being inflated away and they don’t want the threat of weaponization over their heads, they are moving into a safe haven asset: gold.

06:01
Gold cannot be inflated, cannot be weaponized, and has no counterparty risk. That’s why we’re seeing gold’s price rise, and why I expect it to continue to go up.

06:35
If you answered yes to questions like: Is the United States going to continue to overspend? Are geopolitical tensions going to continue to escalate? Are central banks going to continue to move away from the dollar? Then it is very clear that gold’s price is going to continue to climb.

07:04
This is why I am such a big believer in holding physical gold and silver and making sure you are diversified outside of the system. If you do not already have a plan in place for all of the uncertainty in the world, I highly recommend you get one.

07:35
If you don’t know where to begin or want a second opinion, talk to a member of our team. They are experts, and I’ve learned so much from them. Call us at the number below or click the Calendly link in the description.

08:00
As always, I so appreciate you being here. I’m Taylor Kenney with ITM Trading, your trusted source for all things Gold, Silver, and lifelong wealth protection. Until next time.

SOURCES:
https://www.cnn.com/2025/01/20/economy/tariffs-trump-executive-order/index.html
https://www.cnbc.com/2025/01/21/us-treasury-yields-trump-returns-to-the-white-house-.html
https://www.bloomberg.com/news/articles/2025-01-22/gold-xauusd-holds-near-11-week-high-as-trump-hints-at-china-tariffs
https://www.fxstreet.com/news/gold-price-surges-to-two-month-high-amid-tariff-concerns-202501212020