Trump gold investment is on the rise as growing political and economic uncertainty under the Trump administration drives investors toward gold as a safe haven. Gold Exchange-Traded Funds (ETFs) have gained significant traction, fueling the precious metal’s record-breaking rally.
Since taking office, President Donald Trump’s policies—including aggressive trade tariffs, controversial geopolitical stances such as his remarks about annexing Greenland, and his unconventional diplomatic strategies to end the Ukraine war—have fueled market volatility. As a result, gold prices have hit successive all-time highs, reaching a record $3,004.86 per ounce on Friday. This marks a 14% increase since the start of 2025, following an impressive 27% surge in 2024.
Growing Gold ETF Inflows
Initially, the shift toward gold ETFs was primarily driven by European investors. However, analysts note that recent U.S. market instability is prompting American investors, who traditionally favor equities, to consider gold as a hedge against economic uncertainty. According to the World Gold Council (WGC), gold holdings in Europe-listed ETFs have increased by 46.7 metric tons—a 3.6% rise—bringing the total to 1,334.3 tons since the start of 2025. This marks a sharp reversal from the large outflows seen between 2021 and 2024.
Market experts suggest that further inflows into gold ETFs could sustain price momentum, despite concerns about the market being overbought. Ole Hansen, head of commodity strategy at Saxo Bank, stated, “Investors, such as real money managers, especially those in the West, needed a stock market scare big enough to drive them back into gold. That is what we are seeing now.”
U.S. Investors Turning to Gold
U.S. retail investors have increasingly turned to gold following Monday’s sharp decline in the benchmark S&P 500 index, which recorded its biggest drop of the year. While some American investors remain confident in the domestic economy, recent inflows into North American gold ETFs indicate a growing interest in gold as a hedge against potential downturns.
Alexander Zumpfe, a precious metals trader at Heraeus Metals, noted, “In the U.S., some investors may be less concerned despite similar global risks, possibly due to stronger confidence in the domestic economy. However, recent inflows into North American gold ETFs indicate that interest in gold as a hedge is also growing.”
So far in 2025, gold holdings in U.S.-based ETFs have increased by 68.1 tons, a 4.3% gain, bringing total holdings to 1,649.8 tons.
Equities’ Loss Could Be Gold’s Gain
According to Saxo’s Hansen, Trump’s policies have led to a retreat from U.S. equities, which have long been favored by investors. This shift could further benefit gold in the short term.
The demand for physical gold has also surged, with retail investors globally seeking exposure to the metal. London-based BullionVault reported that the number of first-time gold buyers on its online platform in February reached its highest level since May 2021. Adrian Ash, BullionVault’s head of research, revealed that gold investor demand exceeded customer profit-taking by 0.2 tonnes—the highest margin since June 2023.
Despite strong demand, analysts caution that gold’s ability to stay above the $3,000 per ounce mark will depend on continued retail bar and coin purchases in Europe and North America, as well as increased central bank buying. John Reade, senior market strategist at WGC, stated, “To sustain prices at this level, we need to see further retail demand and intensified central bank purchasing.”
As economic and political uncertainty persists, gold’s safe-haven appeal remains strong, drawing in both institutional and retail investors looking for stability in an increasingly unpredictable market.