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Gold prices hit record high on escalating US-China tension

(Korea Exchange)
(Korea Exchange)

Gold prices rose to a record high on Monday as investors sought to park their money in safer destinations amid the COVID-19 pandemic and renewed tensions between the US and China, data showed.

According to the Korea Exchange Gold Market, the price stood at 69,840 won ($56.66) per gram at Monday’s close, jumping 1,190 won, or 1.73 percent, from the previous session’s close.

The price had surged to 70,000 won the same day, the highest since April 27, when the figure reached 68,890 won during the trading session.

Market watchers attributed the rise in gold prices to growing investors’ appetite for low-risk assets amid growing uncertainties over the US-China trade relations.

“Despite expectations of an economic recovery, investors are worried over the possibility of escalating trade tensions between two nations (US and China), coupled with a rise in new virus cases here,” said Kim So-hyun, an analyst at Daishin Securities.

“Due to the global economic downturn, demand for gold used for accessories and industry materials may reduce, but it will further shine as an investment asset.”

By Jie Ye-eun (