Gold hits new all-time highs

Yesterday, gold posted an all-time record closing price of $2,799, just one dollar short of $2,800. Then, in early trade this morning, it squeaked above $2,800 before pulling back a few dollars. Since then, it has picked up and broken back above this significant level. So, while the margin is small, gold can finally wave ‘goodbye’ to the old records from the end of October, which came just ahead of an uncomfortable selloff which saw prices drop over $250, or 9%, in the space of two weeks. Could history repeat? Possibly. Looking at the daily MACD, gold is pushing back towards ‘overbought’ territory, although it remains below October’s peak. Fundamentally, demand from Asian and Middle Eastern central banks remains strong. In fact, demand has picked up dramatically since Trump’s re-election and tariff threats. There are stories of large shipments of gold from the UK to the US, leading to a lack of liquidity in London markets. Trump has threatened 25% tariffs on US imports from Canada and Mexico, starting tomorrow, and there are concerns of future universal tariffs on all US imports as well. If these fail to materialise, then gold could drop sharply. Alternatively, the US could continue to stockpile for as long as the tariff threat remains. Meanwhile, gold has hit a record high, yet unlike on previous occasions, retail interest is negligible.