Gold slipped in the weeks after Donald Trump's election, but it has bounced back to a two-month high, and there should be further to go. Investors had pencilled in a strong dollar and rising interest rates in the US, but are now realising that these trends are not as certain to materialise as they initially assumed (see story above). Trump has also "swapped diplomacy for Twitter", as Lex puts it in the Financial Times. His protectionist instincts could start a trade war and deal the world economy a severe blow. Investors seem increasingly "likely to want some form of geopolitical hedge".
Viewpoint
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