Gold pushed to new heights by trade war

The uncertainties provoked by the new trade policy of the White House continued to push gold to new records on Wednesday. The yellow metal has crossed the symbolic bar of the $ 3,300 per ounce.

(Keystone-ATS) Around 10:05 am, the Once d’Or jumped 1.57% to 3302.12 dollars.

“Unsurprisingly, the escalation of trade tensions continues to stimulate appetite for gold,” notes Ipek Ozkardeskaya, analyst at Swissquote.

The weakening of the dollar plays a role in the appreciation of precious metal: “The US dollar remains under pressure from the trade war which is starting to have concrete consequences for American companies and feeds fears of recession in the United States,” said the analyst.

“American hedge funds sell not only American actions, but also European actions to focus on gold (…), the Swiss franc and to everyone’s surprise the euro which becomes a refuge value,” noted Christopher Dembik, investment strategy advisor at Pictet AM.