Gold prices have soared to a new record high as investors increased their holdings of the precious metal. The surge occurred even amid easing trade tensions between the United States and China, and the potential reopening of the US government, both factors that typically reduce demand for safe-haven assets like gold.
Despite these developments, traders capitalised on a selloff that occurred on Friday, buying more bullion and driving the price of gold to an all-time high of $US4381.52. This surpasses the previous peak of $US4379.93 that was reached last week.
Comments from US President Donald Trump, who stated that the US will “be fine” with China, preceded the resumption of trade negotiations between the two countries. Additionally, National Economic Council Director Kevin Hassett indicated that the government shutdown may conclude this week. Typically, such news would decrease the demand for gold.
Gold’s performance underscores its continued appeal as a store of value in uncertain economic times, with investors seemingly prioritising safe-haven assets over potentially positive macroeconomic developments.
