One kilogramm fine gold bar are pictured in the Pro Aurum KG in Munich, Germany, on Wednesday, July 10, 2019. Photographer: Michaela Handrek-Rehle/Bloomberg 
Gold is showing its mettle once again as a store of value during times of crisis, surging more than 20% this year as Washington and Beijing have squared off. The two sides traded fresh blows on Friday, and over the weekend, President Donald Trump kept up his hard line. The fight is hurting economic growth, boosting the likelihood of additional U.S. rate cuts from the Federal Reserve.
As most raw materials fell, precious metals are “the standout sector, as gold prices rallied,” Australia & New Zealand Banking Group Ltd. said in note.
Fed policy makers have made the case that trade disputes are poisoning the global economy and making their job more difficult. On Monday, the U.S. 10-year cash yield sank to 1.4695%, the lowest level since August 2016.
With futures 1% higher at $1,553.30 at 10:35 a.m. in Singapore, miners’ shares surged. In Sydney, Newcrest Mining Ltd. rallied as much as 6.7%.
As gold’s rally has gathered pace, investors have pushed into bullion-backed exchange-traded funds, which have hit the highest since 2013. Holdings are set for a third monthly climb, according to data compiled by Bloomberg.
Gold “should continue to soar” as investors seek havens from trade tensions and further Fed easing, said Helen Lau, an analyst at Argonaut Securities Asia. “Meanwhile, currency depreciation should lead to more diversification away from risk assets in general into gold or gold-related stocks.”