Gold surges to 6-year high

Gold rose to a more than six-year high on Monday, gaining more than 1%, as an escalating trade conflict between the United States and China sent investors scurrying for the safety of bullion.

Spot gold was up 1.5% at $1,462.40 per ounce as of 1301 GMT, after hitting its highest level since May 2013 at $1,464.60. US gold futures rose 1.2% to $1,474.30.

“This (price action) is still about the escalation of trade tension between the US and China … risk aversion is spreading in financial markets and that is something which definitely helps gold,” Julius Baer analyst Carsten Menke said.

Fears of a slowdown in global economic growth and expectations of more rate cuts by the US Federal Reserve were also supporting bullion, he added.

Global stocks fell for a sixth day on Monday while US.

10-year yields dropped to a near-three-year low.