Gold consolidates above $1,900, hits all-time high

Gold prices rose in European trade on Monday, to extend gains for the seventh day, posting new record highs above the $1,900 barrier, thanks to strong safe-haven demand, and the US dollar's drop to 2-year low against its rivals.

Gold prices rose 2.25% to the all-time high of $1,945.25 an ounce, after opening at $1,902.40, with a session-low of $1,899.55.

Gold gained 0.75% on Friday, posting its sixth straight daily gain within the longest winning streak since December 2019.

Gold prices gained 5.1% during the past week, to post the seventh straight weekly gain, and the largest since March.

Safe-haven demand for gold increased due to the escalation of geopolitical tensions between the US and China, after Beijing ordered the US Consulate General in the southwestern city of Chengdu to close on Friday, following Washington's order for Beijing to close its consulate in Houston.

The US Secretary of State, Mike Pompeo, stressed that the US will no longer tolerate China's attempts to usurp global order.

The dollar index fell 0.2% today, to extend its losses for the seventh day, and hit a 2-year low of 93.76 points, which comes in favor of gold and other dollar-denominated metals prices.

This drop in the US dollar came due to the US treasury bond yield 10-year falling, and growing odds for the US Federal Reserve to boost its stimulus policy to ease the gloomy outlook for the US inflation.

Gold stocks at the SPDR ETF rose 1.76 metric tonnes yesterday, with the total at the highest level in May 2013 of 1,228.81 metric tonnes.