The Globe and Mail reports in its Saturday edition that over the past 12 months, the price of gold has soared nearly 35 per cent, outperforming the S&P 500 by 22 percentage points. The Globe's David Berman writes that last week, gold reached an intraday high of $2,906 an ounce before the rally sputtered Thursday. In addition to central-bank buying, trade uncertainty adds to the bullish backdrop for gold. Imports from Mexico and Canada represent about 20 per cent of U.S. gold consumption. Imposing tariffs on these imports will drive the price of gold higher. If tariffs cause inflation to accelerate in the broader economy -- as many economists expect -- then gold demand should rise as investors seek a popular hedge. One thing that could stand in the way of this bullish scenario for gold is if level heads prevail, meaning U.S. President Donald Trump recognizes that tariffs are not good for U.S. stocks and backs off his threats to impose them. The stock market tanked when he imposed them, and he relented. "Investors have suggested the equity market is the U.S. administration's scorecard and any policy changes that hurt risk assets will be quickly dialled back. We advise caution," said Mark Cabana at Bank of America.