NEW YORK: Safe-haven gold pierced the $1,900 per ounce ceiling on Friday for the first time since 2011 as a worsening US-China row added to fears over the hit to a global economy already reeling from the coronavirus pandemic. Spot gold climbed 0.6% to $1,899.03 per ounce by 12:42 p.m. EDT (1642 GMT), after hitting $1,905.99, the highest since September 2011. US gold futures rose 0.4% to $1,896.90.
In yet another escalation, China ordered the United States to close its consulate in the city of Chengdu, responding to a US demand for China to close its Houston consulate.
Further bolstering bullion's appeal was the constant surge in Covid-19 cases, with the US tally crossing over 4 million on Thursday and global cases breaching 15.58 million. Non-yielding gold has surged over 25% this year, underpinned by low interest rates and stimulus from central banks, which benefits bullion since it is a perceived hedge against inflation and currency debasement.
Silver fell 0.5% to $22.61, but was up over 17% for the week, its best since 1987, bolstered by hopes for a revival in industrial activity. Platinum rose 1.2% to $915.77 an ounce and palladium climbed 4.5% to $2,220.61.
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