Holdings in gold-backed exchange traded funds surged to their highest levels in six years last month, as investors ploughed almost $5bn into the precious metal as part of a so-called “fear trade” responding to mounting political risks.

Gold was one of the best performing assets in August, rising 8 per cent and hitting its highest level since April 2013, as US president Donald Trump announced further tariffs on China. Year to date, the price of the precious metal is up 19 per cent to $1,525 a troy ounce.

Investors bought a total of 101.9 tonnes of gold via ETFs last month, worth about $5bn, according to data compiled by Bloomberg, taking total holdings to 2,453 tonnes, their highest level since February 2013. It was the third consecutive month of net buying.