Gold hits records as US policy rattles investors

AFP | London

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Investors nervous about geopolitics, tariff threats and US budgetary issues flocked to buy gold Monday, pushing the safe-haven precious metal well into record territory.

The dollar sank, meanwhile, amid speculation of US-Japanese central bank coordination to support the yen.

Gold climbed above $5,100 an ounce, having cracked $5,000 on Sunday, amid rising global uncertainty and turmoil set off by US President Donald Trump’s policies.

“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,” said Susannah Streeter, chief investment strategist at Wealth Club.

By comparison, gold could be had for just over $2,000 an ounce only two years ago. Silver prices have also spiked to record territory.

“The relentless  quest for hard assets continued amid yet more talk of tariffs and US government shutdowns,” said Neil Wilson, a strategist at Saxo UK.

Several US senators have said they would vote against coming government spending bills after federal agents killed a second American citizen in Minneapolis, significantly increasing the chances of a government shutdown next week.

The US Fed is expected to hold interest rates steady this week despite Trump’s pressure to slash them, which is seen as a threat to its independence, which has traditionally been one of the pillars of US assets’ solidity.

US stocks began the week firmer, with several of the socalled Magnificent Seven tech firms set to report earnings this week.