Gold Prices Hit Record High In India, Worldwide Amid Weaker Dollar And Trade War Concerns
Gold prices in India surge, with 24-karat gold hitting Rs.93,390 per 10 grams. Global uncertainties, such as the US-China trade war and a weaker US dollar, are driving demand for gold as a safe-haven asset.
The price of 24-karat gold in India touched Rs.93,390 per 10 grams, and 22-karat gold was priced at Rs.85,610 per 10 grams. While the 18-carat gold was priced at Rs. 70,050. US gold futures rose 3.2% to settle at $3,177.5, according to news agency Reuters.
"Gold is clearly seen as the favoured safe-haven asset in a world upended by Trump’s trade war. The U.S. dollar has depreciated, and U.S. Treasuries are selling off hard, as faith in the U.S. as a reliable trading partner has diminished," said Nitesh Shah, commodities strategist at WisdomTree as quoted by news agency Reuters.
Amid the price of gold touching this high, there are several reasons for this development, including the trade war escalation and a weaker dollar, among others. Also, the big bond sell-off witnessed on Tuesday is creating an environment where even the US Treasuries are no longer looking safe.
According to TV18, quoting experts, the price of gold could rise further. Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services, said that the rise in price is not just about inflation but about fear.
“With trade tensions between the US and China intensifying and global growth looking shaky, investors are looking at gold as a long-term hedge,” Modi said, as quoted by CNBC.
As the gold prices soar, the weakening dollar, recession in the US, trade war between China and the US are all pointing to the fact that gold will witness a further rise in price.
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