Gold price soars to life-time high of Rs 38,070 per 10 gram amid global trade tensions

Gold price today reached its apex, surpassing the Rs 38,000 per 10 gram mark for the first time ever, amid heightened trade tension between US and China and marked slowdown in global economic activity. The yellow metal has witnessed a sharp surge in demand as a safe haven asset, ever since the US Federal Reserve`s statement that the first rate cut since 2008 was not the beginning of a rate cut cycle. At the Multi-Commodity Exchange (MCX), the October contract of gold was trading at Rs 37,956 per 10 gram before it hit a life time high of Rs 38,070. 

On the global front today, Gold prices jumped 1% to their highest in more than six years, spurring investors to seek refuge in safe-haven assets. Spot gold was up 1.1% at $1,490.57 per ounce as of 0718 GMT, its highest since April 2013. U.S. gold futures climbed 1.2% to $1,501.50 an ounce.

Last week, gold prices surged after the US announced fresh tariffs on Chinese products. Later, China decided not to buy US agricultural products as a response to this escalation. On Monday, China responded by allowing its currency to weaken past the psychologically important level of 7 per dollar, which prompted Washington to label Beijing a currency manipulator.

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Meanwhile, White House economic adviser Larry Kudlow has stated that the Trump administration wants to continue trade talks with China and is still planning to host a Chinese delegation for talks in September.