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Gold prices reached new heights Wednesday March 22, capping off a string of significant gains, according to Bloomberg. The yellow precious metal finished the day up 0.4 percent at $1,250.33 per Troy ounce. This prolonged a six-day streak during which gold has risen more than 4 percent, the largest gain since the U.K. voted to separate from the European Union last June.
Analysts pegged the increase to a widespread downturn in stock-market activity related to the potential economic polices of President Donald Trump. Investors have waited since Inauguration Day to see how the president might accelerate fiscal growth, with many betting on future gains by investing heavily in stocks and bonds. However, Trump has yet to reveal his long-term economic agenda, leading traders to abandon growth-centered strategies and revert to safe havens, MarketWatch reported.
"Gold has risen more than 4 percent over the past 6 weeks."
Additionally, the president has not provided details on the national infrastructure initiative that served as a campaign centerpiece. This proposal initially excited investors, but many have since cooled on the plan.
"The expectation of sweeping tax cuts and extensive infrastructural measures from the Trump administration, which would drive up inflation and result in bigger Fed rate hikes, appears to be dwindling," analysts for Commerzbank wrote in a client communication obtained by Bloomberg. "Trump has so far failed to follow up on any of his grand announcements."
Gold began the year strong, rising 9 percent over the course of January and February, according to Market Realist. The precious metal experienced a slight decrease this month in the days leading up the Federal Open Market Committee Meeting, which was bookended by an interest rate hike. However, this latest jolt could put things back on track and move gold forward.