"In this febrile geopolitical environment, gold for now seems to know no bounds. "The pile on into the gilded safe haven is continuing with the precious metal racing up higher. It vaulted over the psychologically important 5,000 mark on a glittering streak, heading sharply higher as trade tensions emanating from the US, unnerved investors. President Trump threatened 100% tariffs on Canada, for daring to negotiate with China on a new trading relationship."
"The dollar's decline is part of the story. The greenback has taken another hit as concerns continue to swirl the impact of tariffs, high government spending and inflation on the US economy, prompting investors to recalibrate their exposure to the US. A weaker dollar makes precious metals more attractive to buy given they are denominated in the currency. As the march towards shelters offering security continues with the preservation of capital the priority, gold and silver are shining."
Gold is trading around $5,096 an ounce, up more than 2% and approaching $5,100, while silver has reached about $109 an ounce amid record-breaking demand. Miners led gains on the FTSE 100 as soaring metals prices outweigh currency disadvantages for companies such as Fresnillo, Antofagasta and Endeavour. The dollar weakened on concerns over tariffs, high government spending and inflation, boosting appeal of precious metals. The pound strengthened amid policymaker doubts about further rate cuts, and UK borrowing costs eased after a Labour leadership bid was quashed, underpinning local market dynamics.
Read at London Business News | Londonlovesbusiness.com
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