Spot Gold extended its rally to a new record high of $5,110.50/oz. on Monday, as persistent geopolitical tensions and broader economic uncertainty prompted investors to flock to safe-haven assets.
The latest catalyst was “effectively this crisis of confidence in the U.S. administration and U.S. assets, that was set off by some of the erratic decision-making from the Trump administration last week,” Kyle Rodda, senior market analyst at Capital.com, was quoted as saying by Reuters.
“This Trump administration has caused a permanent rupture in the way things are done, and so now everyone’s kind of running to gold as the only alternative.”
Last week, US President Donald Trump backed away from threats to impose tariffs as leverage to take control of Greenland. Trump also said that he had secured permanent US access to Greenland in a deal with NATO, but details were not provided.
This past weekend, the US President threatened a 100% tariff on Canada in case the country followed through on a trade deal with China. He claimed Canada could serve as a transit point for Chinese goods entering the US.
Trump also said the US would impose a 200% tariff on French wines and champagnes – an obvious effort to pressure French President Emmanuel Macron to join his Board of Peace initiative.
In addition to geopolitical factors, monetary policy expectations continued to support Gold. Investors are currently expecting at least two rate cuts by the Federal Reserve this year, starting as early as June.
Spot Gold was last up 2.20% on the day to trade at $5,097.07 per troy ounce.
A weaker US Dollar has also lent support to the precious metal.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
