Gold shines amidst market volatility
Due to the intensifying trade war between the US and China, there has been a record rise in the price of gold and silver. At 11 am on the first business day of the week, the price of gold had crossed the psychological level of 39 thousand. During this period, the price of gold rose by Rs 550, ie about 1.45 per cent, and it was trading at Rs 39,300 per 10 grams.
If the same momentum is maintained for the next few hours, then it is likely that the price of gold will cross the level of Rs 40 thousand per 10 grams on Monday itself. In addition to gold, silver saw a rise of Rs 670, or 1.48 per cent, and was trading at Rs 45,275 per kg.
What is the reason for Gold prices sky rocketing
Actually, the trade war has deepened again with the announcement of imposition of new import duties between the US and China. US President Donald Trump has again warned to impose an additional five per cent import duty on goods worth $ 550 billion imported from China. Earlier, China had announced imposition of additional import duty on goods worth $ 75 billion imported from the US from September 1 and December 15. In this situation, investors worldwide are scared and they are turning to safe investment. In the eyes of investors, gold is the best and reliable means of safe investment.
This is also a special reason
Apart from the international market, there are many other reasons for the rise in gold prices in India. Actually, Prime Minister Narendra Modi’s central government has increased the import duty on gold from 10 per cent to 12.5 per cent, while presenting the general budget last July. This decision of the government has become a new challenge for the importers of gold. India imports most of the gold for its needs. Another reason for the rise in the price of gold is the slow movement of the Indian stock market.
