Mounting economic and geopolitical tensions as a result of the US-China trade war has fuelled a demand for gold across the globe. The price of the yellow metal was pushed to the highest this month as investors flocked to its safe haven.
Following the global cues and increased demand, the gold prices increased Saturday (March 24) by Rs 85 to trade at a one-month high of Rs 31,835 per 10 grams, reports PTI. Gold was trading at around Rs 30,800 per 10 grams Friday.
The trade war fears between the US and China has dragged the US dollar down and make investors nervous. Also, US president Donald Trump's decision to appoint diplomat and attorney John Bolton as his new national security advisor also seems to be adding more risks to the market.
Trump signed a memorandum Thursday that could impose tariffs on up to $60 billion of imports from China. The tariffs have a 30-day consultation period, the time period for public comment, but investors are concerned that a trade war could develop. Trump's proposed tariffs are a response to allegations of intellectual property theft by China.
The Trump administration says that China's trade practices involve stealing American companies' intellectual property. The US has also complained against China at the World Trade Organization.