Gold Hits Record High as US-China Tensions Rise

By Staff, Agencies

The price of gold surged to fresh all-time highs amid coronavirus pandemic-related concerns and US-China tensions.

Spot gold increased by 1.5% to $1,928.83 per ounce by 03:06 GMT on Monday, with US gold futures surging 1.4% to $1,924.20.

This came as the dollar plummeted to a near two-year low against major currencies amid increasing tensions between Beijing and Washington which saw the two sides ordering the closure of their consulates in Chengdu and Houston.

Confirmed COVID-19 cases have, meanwhile, climbed to more than 16 million globally, with over 648,900 fatalities.

The US remains the country with the most cases [over 4.2 million] and the highest coronavirus death toll [over 146,000], according to Johns Hopkins University.

Monday’s record gold prices were preceded by a rise last week, when the price of the precious metal on the New York Mercantile Exchange and Commodity Exchange [COMEX] surged to $1,904 per troy ounce, eclipsing a previous record set in September 2011.

In mid-July, prices for the precious metal lost nearly one percent, dipping below the key $1,800 level amid the “wait-and-see” stance adopted by the European Central Bank.

The developments unfold against the backdrop of oil price-related turmoil, with the benchmark Brent crude LCOc1 dropping to $42.90 per barrel and West Texas Intermediate [WTI] futures CLc1 plummeting $40.36 per barrel earlier this month.