Gold rally similar to 45 years ago

With tensions running high between historic allies over U.S. tariffs, global trade, and wars in Ukraine and the Middle East, big powers look unlikely to pull together swiftly this time to resolve the issues driving interest in bullion as a haven from risk, analysts say.

The metal’s surge above $3,000 an ounce, driven most recently by U.S. President Donald Trump’s new round of tariffs on trading partners, has been the first time in a long time that geopolitics and economic uncertainty have served as the top factors moving the gold market, HSBC analyst James Steel said.

While the market has this year conquered a series of milestones, one more remains. StoneX analyst Rhona O’Connell noted that gold peaked at $850 in January of 1980, which in dollar terms would equate to $3,486 today.

Source – Reuters