Gold enjoys best week in five years as investors rush to safety

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

Gold has enjoyed its best week in five years, as it increased to investors accelerating the safety of one of the few sediments remaining in the global markets in the aftermath of Blitz Donald Trump.

The alloys rose by more than 6.5 percent by Friday, as it reached a new increase of $ 3,237 per ounce-large-week-old-earneb of an ounce, which is the largest weekly gain since the early stages of the Covid-19s in March 2020.

The rise came when panic in the market launched by the US president’s trade -off war caused to retreat from US Treasury bonds and a haven at normal times, as stocks and dollars decreased to its lowest level for three years against the euro.

Alexander Zoomf, a Heraius alloys dealer, said:

He added, “The gathering is gathered through the increasing fears of a full commercial war,” noting the risks of escalating recession, the high revenues of bonds and the weakening of the US dollar as contributing factors.

Since gold at a dollar price, it usually benefits from a weaker American currency, because this makes the cheapest purchase in other currencies.

The global trade war has escalated its markets and contributed to uncertainty about the health of the American financial regime. On Friday, Beijing returned to Washington with a tariff of 125 percent on US imports.

“You hold gold when you are concerned about breaking the system,” said Peter Malin Jones, an analyst at Bill Hunt. “It is not surprising that the safe haven for the cabinet, or just keeping the dollar, is not attractive as it was in the previous crises.”

The alloys in a historic crowd this year were driven by strong demand from investors as well as the financial purchase of central banks that seek to diversify away from the dollar.

During the first quarter, the flows to the gold -backed exchange boxes were at their highest levels since the Koruna virus.

Will Rend, CEO of Graniteshares, an ETF company, said the trip to gold in recent days was driven by fear.

He said: “We are in this very unusual position, as the journey to traditional safe havens was not working,” noting the revenues of the ascending treasury. “You see rates rising in an environment in which people are tense about the market – that breaks the confidence ring.”

The material demand for gold was also strong this week, and in China buyers pay a great bonus on the prices of the international category, a sign of strong demand.

UBS raised the price of the price of gold on Friday for the second time this year, to $ 3500 per ounce of TRY over the next 12 months, with an increase in expectations of $ 3000 at the beginning of the year.

“We expect an additional request from banks, institutions and central investors after the ongoing events,” UBS analysts wrote in a note for customers.