TIL Desk/Business/New Delhi/ Geo-political tensions between the US and Iran on top of a slowing global economy have forced the investors to bet on safer assets, driving the gold prices to over 6-year high.
Demand for the precious metal gained momentum last week when the US Federal Reserve signaled it would cut interest rate in the future Federal Open Market Committee (FOMC) meets in the 2019. The US Fed’s dovish stance weakened the dollar, making the gold cheaper.
“Gold continued its unabated rally, with prices reaching a six-year high as a weaker dollar on rate cuts hopes, lingering trade worries and simmering US-Iran tensions boosted the appeal of the precious metal as a safe haven asset,” a report by Kedia Advisors said on Tuesday.
At multi-commodity exchange (MCX) (19.48 IST), gold contract expiry in August was trading Rs 370 or 1.07 per cent higher at Rs 3,4811 per 10 gram after touching a intra-day high of Rs 34,893. Gold was trading a little over $1,430 per troy ounce in the futures market.
