Gold (XAUUSD) is off to the races again on Tuesday, surging to a new all-time high above $4,700 per troy ounce and showing no signs of slowing down.
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President Trump hasn’t dialed down his interest in acquiring Greenland and has reiterated the self-governing territory’s importance to U.S. and global security. That provided a boost to gold, as the precious metal is viewed as a safe-haven asset that tends to perform well during periods of geopolitical uncertainty.
Investors Turn to Gold as Debasement Trade Heats Up, Dollar Weakens
Rising tensions have led to renewed interest in the “debasement trade,” which is the act of shifting capital into hard assets, like gold, silver (XAGUSD), and real estate, from fiat currencies. “The debasement trade is on fire and precious metals are the outlet,” said Robin Brooks, a senior fellow at the Brookings Institution.
A falling U.S. dollar is also benefiting gold, as it makes the metal cheaper for holders of other currencies, encouraging demand and supporting higher prices.