Gold took a stride toward $1,600 an ounce as the U.S.-China trade war worsened, hurting the outlook for global growth and boosting demand for the traditional haven as risk assets suffered.

Bullion futures rallied as much as 1.8 per cent to $1,565 an ounce on the Comex, the highest since 2013. Silver was also favoured, with spot prices up as much as 2.1 per cent. The advances in the weeks opening session followed gains on Friday.

Gold is showing its mettle once again as a store of value during times of crisis, surging more than 20 per cent 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 per cent, the lowest level since August 2016.

As golds 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.

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