supported by sustained safe-haven demand, US monetary policy easing, robust central bank buying – with China extending its gold-buying spree for a 14th month in December – and record inflows into exchange-traded funds. Prices have gained more than 17 per cent this year.
The latest catalyst “is effectively this crisis of confidence in the US administration and US assets, that was set off by some of the erratic decision-making from the Trump administration last week”, said Kyle Rodda, a senior market analyst at Capital.com.
US president Donald Trump abruptly stepped back on Wednesday from threats to impose tariffs on European allies as leverage to seize Greenland.
Over the weekend, he said he would impose a 100 per cent tariff on Canada if it followed through on a trade deal with China.
