George Milling-Stanley, chief gold strategist at State Street Global Advisors, says 40% of the gold in the past 12 months still have feet. This is why.
Friday broke the $3,000 ounce price threshold for the first time on Friday. Donald Trump's Tariff war.
Spot Gold prices fell below the $3,000 level as traders earned profits after reaching an all-time high of $3,004.86 early in Friday's trading session.
The gold surge above the historic $3,000 milestone was driven by “a challenging investor seeking the ultimate safe haven assets, given Trump's upset over the stock market.”
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Spot Gold prices surpassed the $3,000 ounce level for the first time on Friday. (Photo: via Arne Dedert/DPA/AFP Getty Images/Getty Images)
Gold bullion, traditionally considered a valuable and safe storage amidst geopolitical turmoil, has soared nearly 14% so far this year. This is partly due to concerns over Trump's tariffs and retaliation by trading partners, which has contributed to the recent stock market divestment.
“True asset money managers in the West, especially in the West, needed the fear of a slowdown to return to strong stock markets and gold. That's happening now,” said Ole Hansen, head of product strategy at Saxo Bank.
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Gold has traditionally been considered a safe home asset for investors in times of economic and geopolitical turmoil. (istock / istock)
Gold prices are also strengthened by demand from central banks, with China boosting its reserves for the fourth consecutive month in February.
“Central Banks continues to acquire record-level gold, which is trying to diversify away from the increasingly unstable US dollar,” said David Russell, CEO of Goldcore.
The Federal Reserve's return to easing monetary policy in the coming months has also helped gold, as traders expect interest rate cuts to resume in June.
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“The reasons why investment demand is likely to remain strong are increasing geopolitical and geopolitical risks, increased inflation expectations, potentially low rates and increased uncertainty that the market feels,” said Juan Carlos Artigas, head of research at World Gold Council.
Reuters contributed to this report.
