In a shortened trading week, gold climbed smartly higher to $1,260 and better, breaking through a significant resistance level at $1,250. The yellow metal hit a headwind on Friday, slipping back below $1,260, but still gained 1.5% in euros and dollars for the week.

For the year, gold is up 9% even in the face of record-high equities and a strong US dollar. In euros, gold has done slightly better, up 9.4% for the year. In pound sterling, gold has gained 6.4%.

Irish bullion broker GoldCore commented, “Geo-political worries and political concerns in the EU continue which is leading a flight to safety bid in gold futures market and gold exchange traded funds (ETFs) and demand for safe haven gold bullion.”

GoldCore also noted the threat of currency wars and the impact on gold. “The dollar looks vulnerable due to the uncertainty about US President Donald Trump and the new U.S. administration’s policies. Overnight Trump attacked China and accused the Chinese of being ‘grand champions’ of currency manipulation. This alone is quite bullish for gold. It does not create confidence about trade relations between the world’s two biggest economies and it suggests that we may be about to embark on the next phase of the global currency wars.”

New debt crises in Greece, Italy, and Portugal could also boost safe haven demand for gold, said GoldCore.