Breaking: Gold breaks through $1900 mark, fresh multi-year tops

Gold continued scaling higher through the early North American session and shot to fresh multi-year tops, breaking through the key $1900 mark.

The precious metal built on this week's bullish breakout through the $1812-14 supply zone and continued gaining traction for the sixth consecutive session. The strong momentum was sponsored by the prevalent US dollar selling bias and got an additional boost from the recent escalation of tensions between the world's two largest economies.

Investors remain concerned that the economic recovery in the US could be grinding to a halt amid the resurgence in coronavirus cases. This, in turn, dragged the USD to 22-month lows and benefitted the dollar-denominated commodity. The greenback was further pressured by sliding US Treasury bond yields, which further boosted the non-yielding yellow metal.

Meanwhile, diplomatic tensions between the US and China escalated further after the latter on Friday ordered the US to close its consulate in Chengdu. This comes after the US earlier this week ordered China to close its Houston consulate. This, in turn, took its toll on the global risk sentiment and forced investors to take refuge in traditional safe-haven assets, including gold.