KONTAN.CO.ID - SINGAPORE. Gold surged to record highs on Monday as an intensifying U.S.-China row and a weaker dollar sent investors scurrying to the safety of bullion to hedge against the risks to a global economy already reeling from the COVID-19 pandemic.

Monday (27/7) at 14.00 WIB, spot gold rose 1.6% to US$1,931.50 per ounce after hitting a record high of US$1,943.93. U.S. gold futures gained 1.6% to $1,927.50.

Silver too joined the rally, jumping more than 6% to $24.36, its highest since September 2013.

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Gold is in "perfect condition to move higher," said ANZ commodity strategist Soni Kumari, amid the virus crisis and central banks pushing for liquidity.

"Further support is also coming from falling yields, weaker dollar and geopolitical tensions between the U.S. and China. The safe-haven demand (for gold) has been rising while there is none for USD anymore."

The dollar fell to a near two-year low on increased bets the U.S. Federal Reserve could flag another accommodative policy shift when it meets this week, implying lower interest rates for longer.

China seized the U.S. consulate in Chengdu, retaliating to the closure of its own consulate in Houston.

Editor: Anna Suci Perwitasari