Gold hit another fresh record high on Monday as traders digested a raft of economic data and prepared for central bank action later in the week.
Gold was trading at $2,336 at the time of writing, retreating slightly from highs above $2,340.
The gold rally is at odds with Western equity markets, which have also consistently broken to fresh highs. Gold is seen as a safe haven by many investors and is usually expected to move in the opposite direction to comparatively risky stocky.
Amid developed market equity strength, the gold rally has been attributed to Chinese buyers seeking to hedge against economic uncertainty and elevated levels of central bank buying.
“Gold shot past $2,340 an ounce on Monday, a new record high. Investors are continuing to untangle the implications of a stronger US jobs market, and the potential for higher interest rates,” said Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown.
“The needle is likely to move this week, depending on the outcome of the Federal Reserve’s March minutes and CPI data. Some commentators believe that sub-$2000 pricing for the shiny stuff could be a thing of the past, but as with all commodities, there will be ups and downs.
“There’s an element of people chasing the high which is contributing to the climbs seen in recent days, rather than the rally being solely based on fundamental factors.”
