2020.07.2710:32:00UTC+00Gold Hits Record High Amid Virus Fears

Gold surged to record highs on Monday as coronavirus pandemic-related concerns and escalating U.S.-China tensions sent investors scurrying to the safety of bullion.

Spot gold jumped 2.1 percent to $1,941.51 per ounce after hitting a record high of $1,944.57. U.S. gold futures were also up 2.1 percent at $1,937.55.

Global coronavirus cases exceeded 16 million over the weekend with over 644,000 deaths.

China today reported its highest number of coronavirus cases in three months after fresh clusters hit three separate regions.

The U.K. surprised holidaymakers and tourism businesses alike over the weekend when it abruptly announced a 14-day quarantine on travelers coming from Spain.

The Spanish health ministry reported more than 900 new cases of the coronavirus on Friday.

U.S.-China ties have deteriorated this year over issues ranging from the new coronavirus and telecoms-gear maker Huawei to China's territorial claims in the South China Sea and Hong Kong crackdown.

Many observers are pessimistic about deteriorating U.S.-China relations following the closures of consulates in Houston and Chengdu.

Falling yields and weaker dollar also boosted demand for the precious metal.

The dollar hit fresh four-month lows below ?105.40 in Tokyo trading, reflecting growing concerns over the outlook for the global economy and amid bets that the U.S. Federal Reserve could flag another accommodative policy shift when it meets this week.