Here is why veteran investor Mark Mobius is betting big on gold

As gold prices surge, investor Mark Mobius said he would continue buying the yellow metal.

"When interest rates are zero or near zero, then gold is an attractive medium to have because you don’t have to worry about not getting interest on your gold. The gold price will rise as uncertainty in the markets is rising," Mobius said in an interview with Bloomberg TV.

"I would be buying now and continue to buy," said Mobius, who is the founder of Mobius Capital Partners.

Gold prices surged past $1,900 per ounce on July 24 for the first time since 2011, amid rising US-China tensions adding to the uncertainty around the global economy.

Geopolitical tensions between the US and China increased after the closure of a Chinese consulate in Houston.

The COVID-19 outbreak has caused an increase in demand for safe-haven assets such as gold and silver.

Gold's rally may extend into 2021 "on dollar wobbles amid rising geopolitical risks in a lower-for-longer interest-rate environment," Eily Ong, an analyst at Bloomberg Intelligence, wrote in a note.

UBS Group has forecast the bullion's price to hit $2,000 by the end of September.