Gold Prices Surge On Global Tensions, Brexit Uncertainty

(RTTNews) - Gold prices spiked on Monday as rising U.S.-China tensions and continued uncertainty over a Brexit trade deal drove up demand for the safe haven.

The continued global surge in coronavirus cases also boosted the value of the precious metal.

Spot gold jumped $25.90 or 1.3 percent to $1,861.80 per ounce.

U.S.-China tensions continue to rise on reports that the United States will impose sanctions on at least a dozen Chinese officials over their alleged role in Beijing's disqualification of elected opposition legislators in Hong Kong.

Also, traders have started pricing in the prospect of a no deal outcome to EU-UK trade negotiations after reports that Prime Minister Boris Johnson was ready to walk away from negotiations amid stubborn differences on fishing rights in U.K. waters, fair competition and ways to solve future disputes.

The European Central Bank is expected to announce further bond-buying when it meets on Thursday.