Gold prices in the international market edged closer to its 14-month high as trade and political tensions, along with a possible rate cut by the US Federal Reserve, increased demand for the safe haven metal among traders.
Spot gold rose by 0.3 percent to $1,345.49 an ounce, drawing closer to $1,348.08, the level it touched last week, its highest price since 19 April 2018.
Gold prices in India also saw a similar surge on Friday, where 10 grams per 22 carats prices rose to Rs 31,190 in Chennai, Rs 32,160 in Mumbai, Rs 31,860 in Delhi and Rs 32,160 in Kolkata.
Concerns of a global recession looms as trade conflicts have caused a fall in growth prospects. Over 600 American companies have urged the US President Donald Trump to resolve its tariff dispute with China as it will hurt businesses and consumers in the country.
The trade war, that has been going on for over a year has also caused an unexpected increase in number of Americans filing for unemployment in the last week, a Reuters report said. Recent data also showed that US import prices fell the most in 5 months, muting inflation pressure and increasing expectations of rate cut by the US Federal Reserve.
Further, the US blamed Iran for attacks on two oil tankers sailing in the Gulf of Oman- the Kokura Courageous and Norwegian-owned Front Altair, that led to explosions and forced the ship crew to abandon the ship.
The American Secretary of State Mike Pompeo said that claim was made based on an assessment from its military intelligence.
This is expected to further rupture relations between the US and Iran, that have been tense since the American President Trump withdrew the 2015 multinational nuclear pact with the Middle Eastern oil producing country and reimposed sanctions on its exports.