Gold prices surge to six-year high

Gold prices surge to six-year high

Gold prices surge to six-year high

Those negative factors are forecast to boost gold prices to $2,000 an ounce at the end of the year as they may make investors more pessimistic and avoid purchasing risky assets.

With alarms ringing over the projected path for the global economy that has been already dented by US-China trade tensions, investors are increasingly willing to park their money in the non-interest-bearing Bullion while ensuring that safe haven assets remain in vogue.

US gold futures rose 0.3% to $1,480.90 an ounce.

Spot gold rose 1.1 per cent at Dollars 1456.51 per ounce at 12.55 pm, after hitting its highest since May 2013 at USD 1459.47 earlier in the session.

"Gold is in a bull market and is going to trend higher. I would not be surprised to see gold hit the $1,500 level by November-December and keep it sustained there".

The tariffs may also force the Federal Reserve to again cut interest rates to protect the USA economy from trade-policy risks, experts said.

Global stocks fell for a sixth day on Monday while U.S. 10-year yields dropped to a near-three-year low. "All this volatility, growth fears, persistent weakness in economic data will be good enough for risk-off environment", said Benjamin Lu, an analyst at Phillip Futures.

Some factors that may benefit the domestic gold market include the stability of foreign exchange rates between the Vietnamese đồng and foreign currencies, a zero per cent U.S. dollar savings yield rate and tightened policies regarding the number of eligible gold businesses, he told Đầu tư (Investment) newspaper.

The Shanghai Gold Exchange said it would raise the margin requirement on its AU (T+N2) gold contract.

Meanwhile, Reuters reported that gold imports in India for July plunged 55% from a year ago to the lowest level in three years as domestic prices jumped to a record high.

"Trade tensions between the USA and China are an important factor, the potential for escalation is very high ... we might not get what markets are fearing, but it is all adding to the real concerns about the outlook for growth assets".

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.36 per cent to 830.76 tonnes on Friday from Thursday.

Elsewhere, silver gained 1.9 per cent to Dollars 16.51 per ounce and platinum climbed 1.4 per cent to USD 854.33.

Palladium XPD= climbed 0.7% to $1,415.76 an ounce.

Google will include recycled materials in all own products by 2022
Donald Trump To Visit El Paso Tomorrow Following Mass Shooting: Mayor