Worries about tariffs are spooking many investors. But not gold bulls. Fans of the yellow metal are probably relishing all the uncertainty that President Donald Trump’s tariff threats are creating.

Gold prices are up about 8.5% already this year. At just under $2,900 an ounce, the yellow metal isat a record high.And that follows a nearly 30% gain for gold in 2024.

Investors in mining stocks are doing even better. The VanEck Gold Miners exchange-traded fund (GDX), which has big stakes in Newmont Corp., Agnico Eagle Mines and Barrick Gold, has soared more than 18% so far in 2025.

Should investors be a little wary after such a big run this year on top of 2024’s massive gains? Of course. That would be prudent. But it’s worth noting that the mining stocks could have more room to run if gold prices keep climbing. And that seems very plausible.

It appears that both foreign central banks and retail investors are fueling the rally. Poland, Turkey, India, and China have been big buyers, according to data from late last year from the World Gold Council.

“Emerging market banks are very committed to gold and well positioned to purchase more. Strategically, they will continue to be buyers,” said Joe Cavatoni, senior markets strategist with the World Gold Council, in an interview with Barron’s.

It’s all about the Trump trade war. The continued surge in gold is a bit unusual since it’s happening at a time when the U.S. dollar is also strengthening.

Frank Watson, a markets analyst for Kinesis Money, pointed out that a surging greenback is “normally a bearish element for dollar-denominated gold prices,” but he added that “gold’s safe haven appeal remains undiminished amid uncertainty over the economic and inflationary effects of expected US trade tariffs.” In other words, Trump trade policies may trump the usual impact a strong dollar has on gold.

Silver prices have been climbing too, rising about 14% so far this year. Alex Ebkarian, chief operating officer of physical precious metals dealer Allegiance Gold, said in an email to Barron’s that the prices of both metals should keep climbing due to the market uncertainty.

“In a high-risk environment, the appeal of physical gold and silver becomes even more pronounced, as they eliminate counterparty risk and provide a reliable store of value,” he said, adding that the recent move by JPMorgan Chase to deliver about $4 billion worth in gold futures is “an apparent hedge against potential trade disruptions.”

So how much higher could gold go? Michael Arone, chief investment strategist for State Street’s SPDR Business, thinks gold could top $3,000 an ounce sometime this year due to all that’s happening on the worldwide landscape.

“Geopolitical risks and structural transitions in monetary and fiscal policies should also boost the prospects for gold,” Arone wrote. “Central bank purchases throughout the year will likely continue to support gold’s price. All that could finally unleash some pent up investment demand from investors chasing last year’s record gold prices.”

That should be good news as well for the mining stocks, which despite their big run already this year, remain reasonably valued. The VanEck Gold Miners ETF is trading for just 12 times 2025 earnings estimates, lower than its 5-year average of 15. It’s also trading at about a price-to-earnings ratio that is 45% below the S&P 500, much steeper than its usual 20% discount to the broader market.