The gold price hit is highest level in 3 weeks yesterday after calls for the impeachment of US President Donald Trump left financial markets reeling and saw investors flee the the precious metal as a safe haven.
U.S. House Speaker Nancy Pelosi said on Tuesday the House of Representatives will launch a formal inquiry into whether President Donald Trump should be impeached which marks a significant change in tone as the most senior democrat has refused earlier moves to back impeachment proceedings.
Trump, following allegedly pushed Ukraine’s government to investigate Joe Biden and dig up dirt on him in order to dent his chances for the 2020 Democratic presidential nomination.
“There are concerns around impeachment that may have helped unnerve markets a little bit. We saw the U.S. equity markets being pulled to and fro with the ongoing trade tensions,” said Suki Cooper, precious metals analyst at Standard Chartered Bank.
“Over the course of trading today we have seen a combination of concerns around the negative headline, political uncertainty weighing on the stock market and in turn treasury yields come off a little bit, and gold prices being boosted as safe haven asset,” Cooper added.
Also helping the gold price was yesterday’s Supreme court decision in the UK which ruled that UK Prime Minister Boris Johnson’s decision to suspend parliament was unlawful which added to the long list of Brexit uncertainties.
The deadline for the Brexit debacle at the end of October is fast approaching and if the UK can’t strike a deal with the EU in regards to exiting the common block we may see a no deal scenario and more reason for gold to continue its uptrend.