Gold prices were surging on Monday as a flare-up in trade tensions between the U.S. and China boosted the safe haven asset’s appeal.
Futures climbed 1.7% to $3,372 per Troy ounce in early trading, leaving the precious metal about 4% short of the record high it hit in April.
Gold is seen as a safe haven because it maintains its value during times of uncertainty. Its rally Monday was likely due to trade uncertainty putting investors on edge. China’s Ministry of Commerce said Monday that the White House had “severely undermined” the consensus reached at trade talks in Geneva, just days after President Donald Trump said Beijing had “totally violated” the agreement.