The price of gold reach a record high on Monday, surging above $5,000 an ounce, as investors sought a safe haven amid heightened geopolitical tensions and rising global risks.
Spot gold prices jumped as high as $5,102 an ounce, after climbing eight percent last week. Other precious metals were also rising. The price of silver topped $100 an ounce on Monday and hit $109.83, a record.
Futures trading on the U.S. stock markets were muted on Monday ahead of a stream of company financial results expected later this week, and ahead of a meeting of the Federal Reserve, which is expected to keep interest rates steady.
Investors are seeking shelter from global uncertainty, including strains between the United States and the European Union over President Trump’s determination to take over Greenland, leading to fears of a renewed trade war. Tensions in Ukraine, Venezuela and the Middle East continue to simmer.
“There is comfort in holding an asset perceived as secure in a world where the global order may be shifting,” Chris Weston, the head of research at Pepperstone, a financial services company, wrote in a note.
The prospect of another U.S. government shutdown has amplified Wall Street’s anxiety. Several key Democrats in Congress said they would withhold their support from a bipartisan spending bill after federal agents fatally shot a Minneapolis resident on Saturday. The standoff over the bill, which includes funding for the Department of Homeland Security, raises the likelihood of the shutdown at the end of the week.
Gregory Schmidt is a Times business editor overseeing coverage of the European economy. He is based in London.
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