1 week Ago By Swati Bharadwaj
HYDERABAD: The rapidly escalating trade tensions between the US and China propelled gold past the $3,200/ounce mark for the first time on Friday. This in turn also pushed the price of the yellow metal in the domestic market a step closer to the psychologically important Rs 1 lakh/10-gram mark, to Rs 96,000 by Friday evening, a new all-time peak. The recent surge in the yellow metal in the global and local markets came on the back of a sharp drop after the US president Donald Trump escalated the tariff war with most of the country's trading partners, raising chances of a recession in the US.
In the domestic market gold prices had fallen to Rs 88,200 on Tuesday while in the international market it had dipped below the $3,000 mark. In Friday's mid-session on Comex in the US, gold prices had hit a new all-time high at $3,262. The recent recovery in gold prices was driven by renewed demand for safe haven following Trump's erratic remarks on tariffs, that led to a huge sell-off in global equity and bond markets, weakened the dollar, and raised fears of a global recession, said Saumil Gandhi, senior analyst - commodities, HDFC Securities.
"The sharp fall in the dollar index below the 100 level also lifted traders' sentiment," he said. Dollar index is a weighted average price of the dollar against eight major currencies. Earlier this year it had run up to 109.
6. Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials.
Limited seats at 33% off – Enroll now!.
