The price of gold hit a new record high Monday as US-China tensions and a resurgence in the coronavirus sent investors looking for safety.
The precious metal — known as a stable investment in turbulent times — climbed more than 1 percent to $1,944 an ounce. That passed the prior record of $1,921 an ounce that was set in 2011, according to CNN.
The jump followed a week in which the relationship between Washington and Beijing became even more strained, with the Trump administration ordering China to close its consulate in Houston. Chinese officials retaliated by ordering the US out of its Chengdu consulate.
COVID-19 cases are also spiking in the US and other parts of the world, raising fears that the nascent recovery from the worst economic downturn since the Great Depression could be in jeopardy.
“Gold is a traditional safe-haven asset, and there [is] a slew of reasons why nervous investors are seeking safe harbor,” OANDA currency analyst Kenny Fisher said in a commentary.
The surge in gold also came amid a weakening in the US dollar as the Federal Reserve slashed interest rates to blunt the economic effects of the coronavirus pandemic, according to analysts.
US stocks posted a mixed opening Monday as Congress worked on another stimulus spending package to address the virus crisis. The Dow Jones industrial average was down 23.33 points, or roughly 0.1 percent, at 26,446.56 as of 9:36 a.m. after ending last week in the red.
The S&P 500 posted an early gain as large as 0.1 percent, while the Nasdaq climbed as much as 0.8 percent.
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