While other markets recovered yesterday, the Gold price continued its rally, reaching a new record high of nearly $4,180 per ounce early this morning, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen reports.

Gold remains in high demand

"This is likely due to renewed concerns about an escalation in the conflict between the US and China, which were fueled further this morning after the Chinese government imposed sanctions on the American units of a South Korean shipping company."

"This was, in turn, a response to recently imposed US sanctions on the Chinese shipping sector. These developments underscore that the conflict between the two economic superpowers is by no means confined to trade, thereby significantly increasing the potential for escalation."

"For the planned meeting between Presidents Trump and Xi at the APEC summit in South Korea, these developments are certainly not good omens. In this environment, it comes as no surprise that Gold remains in high demand."