Gold gets driven toward US$1,600 as oldest safe haven shows its mettle

Gold is showing its mettle once again as a store of value during times of crisis, surging more than 20 per cent this year as Washington and Beijing have squared off.
Gold is showing its mettle once again as a store of value during times of crisis, surging more than 20 per cent this year as Washington and Beijing have squared off.PHOTO: REUTERS

SINGAPORE (BLOOMBERG) - Gold took a big stride toward US$1,600 an ounce as the US-China trade war worsened, hurting the outlook for global growth and boosting demand for the traditional haven as risk assets suffered.

Bullion futures rallied as much as 1.8 per cent to US$1,565 an ounce on the Comex, the highest since 2013. Silver was also favored, with spot prices up as much as 1.9 per cent. The advances in the week's opening session followed gains on Friday.

Gold is showing its mettle once again as a store of value during times of crisis, surging more than 20 per cent this year as Washington and Beijing have squared off. The two sides traded fresh blows on Friday, and at the weekend, USPresident Donald Trump kept up with his hard line. The fight is hurting economic growth, boosting the likelihood of additional US rate cuts from the Federal Reserve.

As most raw materials fell, precious metals are "the standout sector, as gold prices rallied," Australia & New Zealand Banking Group said in note.