Gold surges to 6-year high

Gold rose to a more than six-year high yesterday, gaining over 1%, as an escalating trade conflict between the United States and China sent investors scurrying for the safety of bullion. Spot gold was up 1.2% at US$1 457 per ounce as of 1037 GMT, after hitting its highest since May 2013 at US$1 460.60. "This [price action] is still about the escalation of trade tension between the US and China ... risk aversion is spreading in financial markets and that is something which definitely helps gold," Julius Baer analyst Carsten Menke said. Fears of a slowdown in global economic growth and expectations of more rate cuts by the US Federal Reserve were also supporting bullion, he added. Photo Nampa/Reuters