Gold hit another record Tuesday, then faded a bit in afternoon trading.
The most actively traded futures contracts surged above $3,500 a troy ounce for the first time, before slipping. In afternoon trading, they were down about 0.8%.
While gold prices have risen for most of the past year, the climb has picked up speed in recent weeks as investors have sold stocks, government bonds and the dollar.
Many investors see the metal as a haven asset. The recent rally likely reflects the economic and financial uncertainty engendered by President Trump’s tariff broadsides and more recently, his attacks on the Federal Reserve. Gold may also be benefiting from foreign central banks diversifying reserve holdings away from U.S. government debt.
Demand for physical bullion is particularly strong in Asia right now, and private investors in Europe have snapped up gold in recent days, said Alexander Zumpfe, a trader at German refinery Heraeus. He thinks gold prices could keep rising toward $3,600 a troy ounce.
There are risks for anyone diving into the rally. Surges in commodity prices have a habit of sowing their own demise by encouraging more supply to come forward in the form of scrap or second-hand sales.
Read more from the original article at Wall Street Journal
