Gold headed for a seventh day of gains Tuesday, after climbing above $5,000 an ounce for the first time ever on Monday. Bullion has surged 85% over the past 12 months, while Bloomberg’s dollar index has fallen 8.2%.

Much of the demand for gold is coming from institutional investors, such as central bankers and sovereign wealth firms, said Mortier of Amundi, which oversees about €2.3 trillion euros ($2.7 trillion) of assets, according to its website.

Trump’s haranguing of traditional US allies, including the latest spat with European nations over Greenland, and the president’s persistent tariff threats will have a cost, according to Mortier.

“You cannot bully your allies like this forever,” he said. “There are new alliances that are starting to build. The direction of Europe on Greenland is quite interesting, which shows that under pressure you can find new forms of fightback.”

Canadian Prime Minister Mark Carney last week called for middle power nations to act in tandem in a blunt message at the World Economic Forum in Davos, Switzerland, in which he warned against coercion by great powers.

There is no compelling case to be made for investing in other major currencies just now, Mortier said.

“Today you may not want to buy euros, the renminbi may be too early, while the Japanese yen is under pressure, so the alternative is gold,” he said. “We have seen this a lot with our clients.”

Gold still has appeal for investors, even above $5,000 an ounce, as a diversifier in portfolios, according to BlackRock Inc.

“It is kind of solidifying itself at the hedge for everything,” Ursula Marchioni, BlackRock’s head of investment and portfolio solutions for EMEA, said in a Bloomberg Television interview this week.