Gold prices have soared more than $50 an ounce in the past week, closing Wednesday at $1,347.
Analysts quoted by Kitco News attributed the higher prices to uncertainties over President Donald Trump’s “erratic” trade policies, and a weak dollar. Trump recently threatened to impose an increasing scale of tariffs on Mexico in an attempt to curb illegal immigration.
Also, payroll processor ADP reported Wednesday that U.S. companies added the fewest jobs in nine years as manufacturers, construction firms and mining companies cut workers in May.
Seventy positions – mostly in management – were cut from local mining giants Barrick and Newmont in May as part of the pending joint venture that will be called Nevada Gold Mines.
Tariffs on Chinese imports also may be causing companies to delay spending on large equipment and machinery, The Associated Press reported.
The rally in gold prices drove the precious metal to its highest level in more than three months.