GOLD prices surged to an all-time high yesterday, with metal for immediate delivery closing in on US$2,000 an ounce as the search for haven assets continued amid the coronavirus pandemic.

Spot bullion surged 11 percent in July, the biggest monthly gain since 2012, as investors weighed a weaker U.S. dollar and record low U.S. real yields. Strategists are now considering alternatives to government debt, such as cash, credit, dividend shares and gold.

The global health crisis has prompted unprecedented amounts of stimulus being unleashed to shore up economies including lower rates, which are a boon for non-interest-yielding gold.

Simmering geopolitical tensions are also boosting demand — U.S. Secretary of State Michael Pompeo said the Trump administration will announce measures shortly against “a broad array” of Chinese-owned software deemed to pose “national security” risks.

“The fall in U.S. 10-year real yields was the most important driver in our view given the strong inverse relationship,” Vivek Dhar, an analyst at Commonwealth Bank of Australia, said in a note. “Safe haven demand primarily reflected global growth concerns linked to rising COVID-19 cases around the world and escalating U.S.-China tensions.”

Spot gold rose as much as 0.6 percent to US$1,988.40 an ounce and traded at US$1,974.36 in morning trading in Singapore yesterday, while most-active futures traded as high as US$2,009.50 on the Comex. (SD-Agencies)