Gold traded above $1,900 on Friday, the first time since 2011, as an escalation in the U.S.-China spat added further safe-haven fuel to a rally to a nine-year peak driven by fears over the economic hit from the coronavirus pandemic.
Silver, meanwhile, was en route to its best week since 1987.
Spot gold was up 0.8% at $1,902.32 per ounce, having hit its highest since September 2011 at $1,897.91 on Thursday. U.S. gold futures rose 0.1% to $1,890.90.
“It’s the indirect effects of the virus to the economy and deep doubts whether we’re going to see a V-shaped recovery which is supporting gold,” said independent analyst Ross Norman, adding “fear factor around the US-Chinese spat will add fuel to the fire but won’t sustain”.
“If the economy doesn’t show quality signs of improving you could see further flows into gold and it would just stride majestically over $1,922 and continue higher up towards $2,000.”
Non-yielding gold has surged 24% this year, underpinned by low interest rates and stimulus from central banks to revive their economies, which benefits bullion since it’s a perceived hedge against inflation and currency debasement.