National Australia Bank’s analysis team explains that the gold surged to $1390, the highest since August 2013, with the US Federal Reserve adopting a dovish monetary policy stance, highlighting ‘uncertainties’ posed by trade and the economy.

“NAB Economics is forecasting two rate cuts in the second half of 2019. Rising trade tensions and the prospect of further deterioration have led to increased levels of risk aversion, further supporting gold. Conversely, a possible trade deal between the US and China at the upcoming G-20 meeting in Osaka might lead to some easing in the gold price. We have upgraded our end-of-year gold forecasts to $1380, up from $1350, with the prospects of further increases ahead.”