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The price of gold has passed $5,000 for the first time as investors flock to the haven asset amid rising geopolitical tensions.
Gold rose to as much as $5,052 a troy ounce on Monday, extending a rally that drove the price up more than 8 per cent last week, its biggest weekly gain since the global financial crisis in 2008.
A historic bullion rally over the past two years has been driven by a surge of investor interest and central banks seeking to diversify away from the dollar.
Last week, US President Donald Trump’s threat to hit European allies with tariffs if they resisted his demands for control over Greenland caused a sharp sell-off on Wall Street, before his abrupt reversal on Wednesday sparked a rebound in stocks.
But the dollar has struggled to make up the ground lost, with an index of the currency against peers including the pound and the euro falling 1.9 per cent last week. Dollar weakness can boost gold by making the dollar-denominated metals cheaper to buy in other currencies.