The mini-pause in the gold price rally is over as it climbs to a fresh record high today. Most of the gains have come in North American trade and it’s now up $36 to $3678 on the day.
It’s been a parabolic breakout in gold since late August, kicked off in part by Trump’s efforts to take over the Fed and BLS. The aim is undoubtedly to push US monetary policy to a more-dovish place and that’s helped to fuel both gold and equity markets to records. In addition, poor US economic data has the market sensing a genuine case for lower rates and a softening of the US dollar.
In the larger world, the war in Ukraine doesn’t look to be headed towards any kind of peaceful resolution soon.
In terms of today’s trade, the positive meeting between the US and China gold negative but it hasn’t played out that way as the market isn’t exactly sensing tariffs coming down.
