As the trade conflict between Sino-US escalated, gold prices jumped in futures trade on Friday. Global economic slowdown fear made investors move towards the safe-haven asset. The gold prices also surged due to an uptick in domestic demand. However, over the world, the continuing trade issues battered the gold rates that experienced the best week in over the last 3 years of trade.
On Friday, further escalation of the trade war between the United States and China and weak economic data from the United Kingdom weighed on global markets, capping a volatile week that has pushed gold to its highest level in six years.
Globally, gold prices fell on Friday, consolidating from a more than 2 per cent surge in the previous session after the US President Donald Trump broke a trade truce with China, but the metal was headed for a third weekly gain in four, Reuters reported. Gold jumped in futures trade on Friday as investors rushed to raise position in safe-haven metal as the selloff in equities continued, while rupee’s slide against the US dollar further boosted the yellow metal.
Read EquityPandit’s Nifty Metal Outlook for the Week