Gold rose to its highest level in more than six years on Wednesday as concerns about the global economy made the precious metal and other traditional safe havens more attractive than riskier assets like stocks. The metal also caught a bid as the amount of negative-yielding bonds keeps growing.
Gold futures for December delivery jumped 2.2% to trade at $1,522.70 per ounce. Wednesday marked the first time since April 2013 that gold traded above $1,500. The gains brought the metal’s gains to more than 18%. That return is higher than the S&P 500′s 14.3% year-to-date gain.
Investors turned to gold at a time when the amount of debt trading at negative yield increases. Currently, there is $15 trillion worth of bonds with negative rates. This makes gold more attractive since it retains its value even in times of slower economic growth.
Concerns over the global economy come as the U.S.-China trade war intensified with Chinese authorities allowing the country’s currency, the yuan, to depreciate against the dollar while several central banks around