Gold prices spiked today (April 11) amid uncertainty over global markets as Donald Trump’s have sparked fresh volatility.
Prices for the precious metal reached £2,477 per ounce this morning, up more than 8.5 per cent over the past four days.
Rob Mansfield, financial adviser at Rootes Wealth Management, said the prices were no surprise considering the state of the markets in recent days.
He said: “Everyone is trying to work out what Trump is going to do next. Markets hate uncertainty and so are either euphoric or despondent based on the latest Truth Social post.
“Gold has a reputation as being a historic store of value so it’s not surprising that people are chasing the price of gold higher.”
After a week of uncertainty, global markets rallied this week after Trump paused additional trade tariffs on most countries except China.
Tony Redondo, founder at Cosmos Currency Exchange called the high gold prices a “screaming signal of market fear”.
He said: “With the dollar tanking, gold is cheaper to buy for non-USD holders, adding fuel to this safe-haven rally.
“Investors are spooked and gold is their bunker. If you’re holding, sit tight; if not, a small 3-10 per cent portfolio slice might help shield you from the storm.”
Meanwhile, Anita Wright, financial planner at Bolton James, said despite usually unfavourable conditions for gold, central banks have been stockpiling the metal.
She said: “If the penny has not dropped for retail investors and institutions, it should.
“Those in the know, namely the central banks, are, through their actions, signalling a lack of confidence in the current monetary system.”
Wright explained that as uncertainty continues to grow and momentum builds, it is likely that retail investors will begin to engage, further fuelling the rise in gold prices.
“Let’s not forget that gold has rallied despite traditionally unfavourable conditions: high Treasury yields, elevated interest rates, a relatively strong US dollar, and positive real interest rates,” she added.
“Historically, these factors have acted as headwinds for gold—yet, remarkably, it has still reached record levels.”
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