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Gold appreciated his best week in five years, increasing to record heights when investors rushed to the security of one of the rare havens to play in the world markets following the price of Donald Trump.
Bullion has climbed more than 6.5% by the fence on Friday, reaching a new summit of $ 3,237 per ounce Troy – the biggest weekly gain since the first stages of the COVVI -19 pandemic in March 2020.
The climb came like the walk Panic unleashed by the American president’s trade war pushed investors to withdraw from the US treasury bills, a paradise normally, while the actions rushed and the dollar fell at three years against the euro.
“A large sale in American treasure shares and vouchers has shook confidence in American assets, encouraging investors gold“Said Alexander Zumpfe, a merchant of Lingots in Heraeus.
“The rally is fueled by growing fears of a full-fledged trade war,” he added, pointing growing recession risks, arrow-shaped bond yields and a weakened US dollar as contributory factors.
As gold is at the price in dollars, it generally benefits from a lower American currency, as it makes it cheaper to buy in other currencies.
The climbing of the World Trade War disrupted markets and contributed to the uncertainty of the health of the American financial system. On Friday, Beijing retaliated in Washington with a 125% price on American imports.
“You have gold when you worry about breaking the system,” said Peter Mallin-Jones, analyst at Peel Hunt. “It is not surprising that the refuge of treasury bills, or simply hold the dollar in cash, is not as attractive as in previous crises.”
Bullion was on a historic rally this year, propelled by a strong demand from investors as well as physical purchases from central banks seeking to diversify far from the dollar.
During the first quarter, the backgrounds exchanged to support gold were at their highest level since the coronavirus pandemic.
Will Rhind, Managing Director of Granites, an ETF company, said that the Gold Flight in recent days had been motivated by fear.
“We are in this very unusual situation, where the flight to traditional shelters has not worked,” he said, highlighting the growing yields of the Treasury. “You see rates increasing in an environment where people are nervous about the market – which breaks the loop of trust.”
The physical demand for gold was also strong this week, and in China, buyers pay an important premium for metal rather than international points prices, a sign of high demand.
On Friday, UBS increased its gold price forecasts for the second time this year, at $ 3,500 per ounce Troy in the next 12 months, against the $ 3,000 forecasts made at the start of the year.
“We are expecting the additional demand for central banks, institutions and investors after current events,” wrote UBS analysts in a note to customers.
