Gold Passes $1500 Mark for First Time in 6 Years

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Among other precious metals, silver's price rose by around 1.7 per cent to about $17 an ounce.

Gold has been one of the chief beneficiaries of the turmoil in global financial markets as Washington and Beijing spar over trade. Holdings of the largest gold-backed exchange-traded fund (ETF), SPDR Gold Trust, rose to 835.16 tonnes on Monday, the highest level since June 6, 2018. "Many market watchers now reckon the US-China trade war being ratcheted up another notch will prompt the Federal Reserve to again lower US interest rates soon", Jim Wyckoff, senior analyst with Kitco Metals, wrote in a note.

Meanwhile, globally, spot gold was trading marginally lower Dollars 1,497.40 an ounce in NY, while silver was trading at USD 17.16 an ounce. The surge comes after a jump in worldwide price to its highest in 6 years.

On Wednesday, gold price touched at all-time high of Rs 37,920 per 10 grams in New Delhi, which is an increase of Rs 1,113 from the previous close.

Silver ready climbed Rs 630 to 44,300 per kg, while weekly-based delivery jumped Rs 745 to Rs 43,730 per kg.

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.

Trade war may escalate to currency war, hurting Japan
Trade weakness has added to pressure on Xi's government to shore up economic growth and avoid politically risky job losses. Analysts say the recent weakening of the Chinese yuan to below 7 to the dollar could boost metal exports going forward.

The worsening Sino-US trade talks may lead to further rate cuts from US Fed to support lingering economy, he added.

Further highlighting concerns that policymakers have about the global economy, New Zealand's central bank cut interest rates more than expected.

Bullion has plenty of fans among veteran investors. -China trade war and falling stock markets. "Gold is in a major bull market".

China's exports likely declined for a second successive month in July, according to a Reuters poll, signalling a hit from tariffs in the escalating trade war.

Goldman Sachs said it no longer expects a trade deal to be struck before the 2020 USA presidential election, while Morgan Stanley warned that more tit-for-tat tariffs could tip the world economy into recession by the middle of next year.