Gold extended its rally, with spot prices topping $3,970 and December futures surpassing $4,000 for the first time, driven by mounting global political and economic uncertainty, according to Bloomberg. They write:
Gold inched higher, extending a rally fueled by the US government shutdown and the political crisis in France.
Spot gold rose past $3,970 an ounce. December futures in New York, the most active contract, surpassed $4,000 for the first time. […]
The political shakeups in France and Japan are adding to fiscal concerns and contributing to the rally in gold, Nicky Shiels, head of research and metals strategy at MKS Pamp SA, said in a note. A mix of retail demand, especially in Europe and Japan, and institutional inflows has driven the latest surge, she said.
US President Donald Trump has set the scene for gold’s surge of around 50% this year, as his aggressive moves to reshape global trade and geopolitics spurred a flight to safety and a move away from the dollar. […]
“I’d suggest overweight in gold — despite its high price — as a hedge against the US dollar and preparing for more shocks to come,” said David Chao, a global market strategist at Invesco Asset Management. Allocation to gold as a percentage of investors’ portfolios is likely currently in the low single digits — but a level of around 5% is “a prudent measure to me,” he added.
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