NEW YORK: Gold prices climbed 1% on Monday to hit the highest level in more than a month, as investors took refuge in the safe-haven metal after an uptick in coronavirus cases dampened hopes for a quick economic recovery.
Spot gold was up 0.7% to $1,755.58 per ounce at 02:41 p.m. ET (1841 GMT). The session high was 1,762.84, the highest since May 18.
Prices were $8.97 shy of a 7-1/2 year high of $1,764.55, hit last month.
US gold futures settled 0.8% higher at $1,766.40.
"There is some flight to safety in gold," said Bob Haberkorn, senior market strategist at RJO Futures.
Gold, a safe haven during times of economic uncertainty, got a boost after the World Health Organization on Sunday reported a record jump in global infections, with the biggest increases in North and South America.
Two US Federal Reserve officials on Friday warned the unemployment rate could rise again if the pandemic is not brought under control.
Central banks across the globe have taken aggressive stimulus measures and kept interest rates low during the crisis.
Meanwhile, SPDR Gold Trust holdings on Friday rose 2% to 1,159.31 tonnes, the highest level since April 2013.
Silver rose nearly 1% to $17.77 per ounce, after hitting a more than one-week high at $18.01. Palladium was up 1.1% at $1,932.28 , while platinum gained rose 2.3% to $823.65, hitting more than a week high at $833.67.