The gold price climbed past $1,386.25 per ounce this morning – the highest Dollar price in nearly six years, and gaining $44 (3.3 per cent) in 24 hours.

The price has climbed by 8 per cent since early May when the US and China increased tariffs on each other’s exports, and this combined with the prospect of lower interest rates, has resulted in a soar in price.

At the start of the year the consensus was that US interest rates would rise a couple of times during 2019. But due to fears that growth in the US economy is cooling, the Fed has now signalled that it will keep rates on hold or even cut them.

Jerome Powell, chair of the Federal Reserve, said: “Many participants now see the case for somewhat more accommodative policy has strengthened.”

Analysts expect this will happen this year, with some even hopeful of cuts next month, but the general consensus is that by early 2020 rates will be reduced.

Chris Howard, The Royal Mint’s director of precious metals, said: “With gold rising to an impressive five-year high, It is clear investors are seeking the safe haven qualities of gold amid heightened geopolitical tensions.

“By increasing their exposure to gold and other precious metals, they have the opportunity to offset the risks of market volatility, as well as benefitting from VAT and capital gains tax exemptions. Furthermore, demonstrating its liquid asset quality, through the Royal Mint Bullion buy-back service, investors have the flexibility of selling their gold bullion coins and bars to back to us, even if it’s not produced by The Royal Mint.”

Gold is viewed by many investors as a ‘safe haven’. It’s a physical asset, not easily created or destroyed, and expected to keep track of inflation over the very long term. Many investors buy gold to hedge against the decline of a currency, usually the US dollar.