Gold rose to a new record high, as trade war concerns boosted haven demand and there were signs of continued short-term tightness in the market.
Bullion rose as much as 1.2% to above $2,877 an ounce on Wednesday. Prices have been supported by concerns about the impact of trade tensions, particularly between the U.S. and China. The market is also waiting to see if there will be a ripple effect for U.S. monetary policy if tariffs rekindle inflation.
There are signs of rising demand for gold as primary dealers look to shift the metal to the U.S. before any tariffs are imposed. So-called one-month rental rates in London have jumped to around 4.7%, well above previous levels near zero. The rate reflects the return that holders of bullion in London vaults can earn by lending their metal to other buyers on a short-term basis.
Source: Bloomberg
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