Gold prices have increased to highs not seen since U.S. President Donald Trump secured election victory in November as investors appear to seek respite in the so-called safe haven.
"(Gold price) support has come from the unwinding of the post-election Trump trade, which has seen bond yields and the U.S. dollar both move lower," Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, said in a note on Friday.
The price of gold crept over the $1250 per ounce threshold for the first time in over three months on Friday. The breakthrough came just a day after U.S. Treasury Secretary Steven Mnuchin stressed an ambitious plan to ensure "very significant" reform passed before Congress' August recess.
Trump has frequently told U.S. citizens he remains committed on both tax reform and regulatory cuts since entering the White House which has created optimism among business executives and investors.
So far, the new administration plan remains unclear though Mnuchin told CNBC on Thursday, "We've been working closely with the leadership in the House and the Senate and we're looking at a combined plan."