by Alex Deluce, Gold Telegraph:
Gold prices hit a five-week high of $1,351.20 per ounce last Monday amidst reports of escalating threat of a trade war between the US and China, forcing investors rush to the safe haven gold. The gold prices also rallied on the back of Goldman Sachs analysts turning bullish on the yellow metal for the first time in over five years. The price increase was also fuelled by the appointment of John Bolton as the new national security adviser by Donald Trump, as the new adviser is considered a foreign policy “hawk”, accentuating geopolitical tensions.
The recent upsurge in gold prices is also attributed to the United States’ expulsion of 60 Russian diplomats for a nerve agent attack on a former Russian spy in Britain. Though the precious metal is always considered as the “go-to asset class” during times of political upheaval, it will be interesting to see whether the recent precipitous slide in the stock market will further fuel the surge in gold prices.