Gold prices reached their most expensive since early November, with a near 1% rise on Tuesday to $2,733 an ounce.
This seven-week high for spot gold is not far from the all-time high of $2,785 reached in October.
"We have seen a notable divergence between gold and oil as Trump declared a national energy emergency that could see the country dramatically increase oil & gas production," says market analyst Josh Mahony at Scope Markets.
"The hope is that this push for higher oil output will curb inflation and allow for greater easing from the Federal Reserve, with gold pushing into a two-month high as a result."
David Morrison at Trade Nation notes that yesterday, gold rallied throughout the early Asia-Pacific session, plateaued early in Europe, was then rangebound until the early evening close, before rallying again overnight.
Given what he calls "shenanigans" taking place across currency markets due to President Trump’s tariff statements, "it’s yet another testament to gold’s current resilience".
At the end of October gold peaked at a fresh record just shy of $2,800 per oz, before it fell to a floor that was found in mid-December, with gold making steady upward progress ever since.
"While gold looks as if it’s on course to retest its old highs, it is currently bumping up against significant resistance in the $2,720 area. This is where prices were unambiguously rejected on two major failed rallies, one in late November, and the second in early December.
"This is a big test for the gold bulls," says Morrison.