Kim jumped to new records, worried about the impact of the US-China trade war.
Spot Gold soaked from the peak after touching $3,357.40 per ounce (£2,540) on Wednesday. It has risen by about 30% since the beginning of the year.
The latest move comes after the head of the US Central Bank who said President Donald Trump’s tariff policies are likely to mean lower growth and higher prices.
Precious metals are considered safer assets for investors in times of economic uncertainty.
In a statement by the Chicago Economic Club on Wednesday, Federal Reserve Chairman Jerome Powell said tariffs that exceeded expectations announced in recent weeks likely mean that US economic growth is likely to rise and rise in consumer prices.
The comments come after turmoil in global financial markets as investors responded to new import taxes being implemented and the escalating trade war between the US and China.
According to Stephen Innes of SPI Asset Management company, gold has become “the busiest trade on the planet,” and is in “full life boat mode.”
“The dollar is stumbling under the weight of whiplash in trade policy, and portfolio managers have lost faith in anything with political discretion,” he added.
Analysts compared this year’s Gold Rally with the Iranian Revolution over 40 years ago, when prices rose almost 120% from November 1979 to January 1980.
Gold went above $3,000 per ounce for the first time last month as uncertainty about the impact of the World Trade War.
Jesper Koll of the advisory firm Monex Group flocked to gold as “a hedge of trust in both inflation and government recklessness.”
“Everyone is looking for ‘real’ assets. It’s becoming more and more clear that the team’s Trump approach to “moving fast, breaking things” will remain the same,” he added.
The Trump administration’s introduction of tariffs was taxes charged on companies importing goods from overseas, which encouraged fear of inflation and forced investors to be known as gold-like safe shelter assets.
Since returning to the White House in January, Trump has placed a 145% tax on China, and China has retaliated with a 125% tariff on US imports.
There is also uncertainty about whether many other countries will wipe out US tariffs after being suspended for 90 days.
The Trump administration has said the measure will bring manufacturing back to the US, create jobs for American workers and generate billions of dollars in tax revenue.
