Home   >   Business   >   Gold price surges to record high amid economic uncertainties

Gold price surges to record high amid economic uncertainties

July 27, 2020

 The price of gold soared to a record high on Monday, rising for a fourth consecutive session, as investors seek to park their money in safer destinations at a time of rising U.S.-China tensions.

A gram of gold was priced at 77,460 won (US$64.74) on the Korea Exchange (KRX), spiking 4.76 percent from the previous session. The gold price hit an intraday high of 78,790 won.

The image, provided by the Korea Exchange (KRX) on July 27, 2020, shows gold bars certified by the South Korean bourse operator. (Yonhap)

The image, provided by the Korea Exchange (KRX) on July 27, 2020, shows gold bars certified by the South Korean bourse operator. (Yonhap)

Market watchers attributed the surge in gold prices to growing investor appetite for safe-haven assets, sparked by escalating tensions between the world’s two largest economies.

U.S.-Chinese relations have hit a nadir amid disputes over trade, Hong Kong civil rights and spying accusations.

The Chinese consulate in Houston closed over the weekend, following U.S. accusations that Chinese agents tried to steal medical and other research information. China struck back by asking the U.S. to close its consulate in Chengdu.

The local currency closed at 1,196.10 won against the U.S. dollar, up 5.40 won from the previous session’s close.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.79 percent to close at 2,217.86, snapping a three-session losing streak.