Spot gold jumped 1.1% to $5 243.58 per ounce after scaling a record high of $5 247.21 earlier, up more than 20% since the start of the year.
US gold futures for February delivery surged 3.1% to $5 237.70 per ounce. Gold’s blistering rally sees it past $5 200 for the first time
“(Gold’s rise) is due to the very strong indirect correlation with the Dollar and yesterday’s price-rise in gold in the US session was due to US President Donald Trump’s remark to a casual question about the Dollar which implied that (there is) a broad-based consensus within the White House to have a weaker greenback going forward,” said Kelvin Wong, a Senior Market analyst at OANDA.
The Dollar was grappling with a “crisis of confidence” as it struggled near four-year lows, exacerbating Dollar selling, after Trump said the currency’s value is “great” when asked whether he thought it had declined too much.
–Reuters–
