The price of gold rose to a new record on Wednesday, fueled by a sharply weakened US dollar and a flight from government bonds.
US President Donald Trump said Tuesday evening that he was not concerned about the dollar’s current weakness. The dollar then initially fell sharply. Because gold is primarily traded in dollars, falling dollar rates usually lead to gains in the gold market.
The gold price climbed about 2 percent on Wednesday morning to a record $5,265 per troy ounce (31.1 grams). On Tuesday, the precious metal had already risen 3.4 percent, the biggest single-day gain since April.
Meanwhile, the dollar has fallen sharply to its lowest level in four years against the euro. That decline, combined with increased geopolitical risks and investor flight from currencies and US Treasuries, has led to strong demand for precious metals.
