GOLD prices surged in Shanghai yesterday as more jittery investors viewed it as a safe haven amid the financial turmoil in the United States which has already spilled over to other global financial markets.

The 99.99 percent pure spot gold jumped 2.1 percent, or 3.58 yuan, to end at 171.45 yuan (US$24.92) on the Shanghai Gold Exchange, China's sole bourse for gold and platinum, yesterday.

Worries the US financial woes could worsen raised gold prices as investors sold stocks and bought gold and bonds.

The gold prices in Shanghai moved in line with the global trend. The local market was closed on Monday due to the Mid-Autumn Festival holiday. Prices of gold in global markets had already soared on Monday following the crisis at Lehman Brothers and Merrill Lynch.

After more than a week of sharp falls, which pushed gold prices to nearly a one-year low, the metal found some support yesterday in Shanghai.

"Investors can add the yellow metal to diversify their investments," said Chan Pak Hin, general manager, wealth management department, Bank of East Asia (China).