Gold futures rallied above US$1,500 an ounce on sustained demand for the traditional haven as the US-China trade war festers, global growth slows and central banks around the world ease monetary policy.
Amid escalation in tensions between USA and China over trade agreements, Spot Gold on Wednesday rose 1.1 percent to $1,490.57 an ounce, the highest since April 2013. Its the first time that gold has trade above $1,500 per ounce since April 2013. Among other precious metals, silver inched up 0.4% to $16.46 an ounce, platinum fell 0.7% at $846.78 and palladium rose 1.2% to $1,431.13. That return is higher than the S&P 500′s 14.3% year-to-date gain.
According to the All India Sarafa Association, in the national capital, gold of 99.9 per cent and 99.5 per cent purity surged Rs 550 each to Rs 38,470 per 10 gram and Rs 38,300 per 10 gram, respectively.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.21% to 836.92 tonnes on Tuesday from 835.16 tonnes on Monday.
Gold futures have gained nearly 90 dollars in the past four consecutive sessions after U.S. President Donald Trump threatened to impose additional tariffs on more Chinese imports.More news: Israel soldier-settler found dead in southern occupied West Bank
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Also fuelling gold's rally was a slump in U.S. Treasury yields and Wall Street, with the Dow Jones Industrial Average tanking more than 300 points.
U.S. gold futures climbed 1.2 percent to $1,501.50 an ounce.
A Federal Reserve official said it was appropriate to "wait and see" how the upcoming data was, before deciding whether rates should be cut again at the central bank's next meeting in September.
Other safe haven assets were also in demand. Lower rates boost the appeal of non-interest-bearing bullion. Those cuts were followed by the Bank of Thailand unexpectedly lowering its benchmark interest rate for the first time in more than four years. Mark Mobius said in July prices were poised to top $1,500 as interest rates headed lower, declaring: "I love gold".
Speaking to the media, DailyFx's currency analyst Ilya Spivak cautioned, "Trade wars are the catalyst for the latest gains". In Europe, investors are tracking the chances of a no-deal Brexit later this year, while there are tensions in the Middle East between Iran and the US.