Gold Hits Record High, As Australian Shares Rise Cautiously Amid China Tensions

Gold prices have surged to their highest values ever as Australia's diplomatic tensions with China weighed on sentiment in the local share market.

By 4:20pm AEST, spot gold had climbed (+1.7pc) to a record high of $US1,933.22 ($2,711) an ounce.

Earlier on Monday, it surged above $US1,943 per ounce, before it pulled back slightly.

The precious metal has been one of the best-performing assets recently, as its value has jumped by more than 25 per cent since the year began.

Its price has been mainly surging due to falling interest rates on long-term (10-year) US Treasury bonds, according to Commonwealth Bank commodity analyst Vivek Dhar.

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