The price of gold reached a “record high” of $1,943 (£1,513) per ounce this morning (27 July), amid increasing tensions in the US and China trade row.
The price rise of 2.2% saw gold overtake its previous record that was recorded in the wake of Black Monday in September 2011.
It comes as investors have “ploughed” money into gold amid increased concerns regarding the state of the global economy, as well as an increased wariness over growing tensions between China and the US.
Tensions have risen after Chinese authorities overtook the US consulate in Chengdu in response to Washington’s order to shut the Chinese consulate in Houston.
According to The Guardian, the price of gold is expected to rise further due to increased geopolitical tensions, with analysts predicting that gold could reach $2,000 (£1,500) an ounce for the first time in history.
Carlo Alberto De Casa, the chief analyst at ActivTradesGold, told the Guardian that gold is seen as “insurance from turbulence on currencies markets”, adding, “While currencies can all be printed, the finite nature of gold and silver makes them better stores of value at these times of uncertainty.”
Mark Haefele, the chief investment officer at UBS Global Wealth Management, said: “In our view the primary drivers of the gold price are its negative correlation to real interest rates and the dollar.
“We think these factors, in combination with limited supply growth as miners continue to restrain capital spending, will drive gold prices higher.”