Gold prices surged to a record high on Tuesday, as investors sought to park their money in safer destinations amid the continued spread of coronavirus and renewed US-China tensions.

According to the Korea Exchange Gold Market, the price stood at 80,100 won ($66.70) per gram at the closing, jumping 2,640 won, or 3.41 percent, from the previous session. Gold prices rose for a fifth consecutive session.

The price hit an intraday high of 82,970 won in early morning trading, the highest figure since the nation’s gold trading platform was launched in March 2014. It was also the first time for gold to exceed 80,000 won per gram, coming just 10 trading sessions after it hit 70,000 won on July 14 this year.

Market watchers attributed the surge in gold prices to investors’ growing demand for low-risk assets amid escalating tensions between the world’s two largest economies. Tensions between the US and China have intensified amid trade disputes, the enactment of a national security law in Hong Kong and spying accusations.

“Investors’ appetite for gold, which is considered a safe-haven asset, is stronger amid the ongoing global COVID-19 pandemic and escalating US-China trade tensions,” said Kim Dae-jun, an analyst at Korea Investment & Securities.

“While facing increased liquidity risks, the US-China conflict, pump-priming measures by central banks in Europe and the weakening US dollar have continuously led to strong gold prices globally.”

Meanwhile, the local currency opened higher against the US dollar at 1,193.8 won per dollar, but it lost its value by 0.8 won from the previous session to close at 1,196.9 won per dollar. The nation’s benchmark Kospi jumped 39.13 points, or 1.76 percent, to close at 2,256.99. 

By Jie Ye-eun (yeeun@heraldcorp.com)