The price of the precious metal has been rising on a weaker dollar and confrontations between the United States and countries including China and Iran. Global tensions pushed gold past a technical resistance which has thwarted every rally for half a decade, with the price rising above $1,400 an ounce for the first time since 2013. The price of gold was at $1,431.10 an ounce at 10.25am BST, according to live data on Bullion By Post. Other precious metals have benefited from higher prices, with silver at $15.47 an ounce at the time of writing.
Platinum was worth $814.68 an ounce, while palladium was worth $1,530.95 an ounce.
The gold rush was also being sparked by hints that the US Federal Reserve may cut rates as soon as next month to combat economic risks
Analysts at Citibank said “a bullish tailwind for bullion” has been created off the back of global tensions, and predicted prices could reach as high as $1,500 by the end of the year.
Robin Bhar, Societe Generale analyst, said: “The stars seem to be aligning for the gold market.”
But he remained cautious and said the only concern is if the Fed does not go through with rate cuts.
He added: “Longer term, rates do seem to be coming down and the dollar seems to have peaked.”
This could be triggered by a positive outcome in trade talks between President Donald Trump and Chinese President Xi Jinping at a G20 meeting in Japan on June 28 and 29.
Similarly, healthy US economic data that would reduce the likelihood of rate cuts, said Standard Chartered analyst Suki Cooper.
She said: “I wouldn’t be surprised if we see a little bit of a pull-back before we see the next leg higher.”
Gold benefits from lower interest rates as bond yields tend to get pushed down, reducing the opportunity cost of holding non-yielding bullion.
They also tend to weaken the dollar, making dollar-priced gold more affordable for buyers with other currencies.
Investors often turn to gold in times of economic uncertainty as the precious metal is seen as a safe-haven commodity.
The European Central Bank also said last week it would ease policy again if inflation fails to accelerate, echoing other central banks which have said they may cut rates to fend off economic slowdowns.
Gold is now more expensive relative to copper, an industrial metal often seen as a bellwether for the global economic outlook, than at any point since 2016.