Gold prices jumped nearly 3% to an all-time high on Thursday, as a drop in the dollar and an escalating trade war between the U.S. and China drove investors towards the safe-haven allure of the precious metal.
Spot gold climbed 2.6% to $3,160.82 an ounce at 01:54 p.m. ET (1754 GMT), after hitting a record high of $3,171.49 earlier in the session.
Four factors are being attributed to the fresh buying interest in gold. One, a drop in the dollar value has been seen and secondly, the escalating trade war between the U.S. and China is driving investors towards the safe-haven allure of the precious metal.
Thirdly, the big bond sell-off witnessed on Tuesday is creating an environment where even US Treasuries are no longer looking safe. Lastly, the US CPI data came in lower, sparking speculation that the US Fed could now cut rates either in the May or June FOMC meeting. A lower rate regime boosts gold prices. (Finance Express)