Despite majority of geo-political and economical issues being initiated by USA, the US dollar basked in all its glory as a safe haven asset backed by strong fundamentals in form of positive US macro data, multiple fed rate hikes and positive price action in US bond market.
The major issues which created high demand for safe haven assets during first three quarters are listed below:
📌 Italian Budget Crisis
📌 German Political Proceedings Which Saw Chancellor Merkel lose Influence
📌 French Yellow Vest Protests
📌 Death of Saudi Journalist & Resulting Tensions Between USA-Saudi
Sino-U.S. Trade War
📌 US Tariff on European Markets With Main Focus on Automotive Products
📌 Crude Oil Price Decline Following US Tariff on Iranian Crude
While few other issues that inspired safe haven demand are not mentioned in the list, above mentioned events had greater long term impact on price action of yellow metal.
Since Yellow metal traded in international market and US markets are denominated in US dollar, investing in bullion was deemed as a costly act with no possible profit owing to gold being non-interest yielding asset.
Price action surrounding gold was further hampered as broad based firm dollar which continued to grow made it costly investment owing to higher exchange rate leading to lesser participating from China, India and other emerging markets which was were majority of action surrounding yellow metal came from owing to said markets viewing gold as a back up against inflation