The price of gold hit another new record yesterday, soaring above $5,300. It’s up an astonishing 3% this morning, as measured by the Comex continuous contract. Gold has gained 22.31%, year to date.
It’s not hard to see why. Gold is outperforming as a safe haven for investors who are bailing out of assets being dragged down by the falling U.S. dollar.
The dollar fell 1.3% yesterday against a standard index of foreign currencies. It’s down over 2% year to date. One euro now buys $1.20. The British pound is worth $1.38. The dollar hasn’t been this weak for years.
U.S. President Donald Trump said he was totally fine with that. “No, I think it’s great,” Trump said when asked by reporters yesterday. “I think the value of the dollar—look at the business we’re doing. The dollar’s doing great.”
