In the international market, gold surged in price by 2% on Friday after investors viewed Jerome Powell's comments to be hinting at a shift to dovish monetary stance. Also, the US President's latest tweets further grimed the outlook on US-China trade war, lifting up safe haven appeal of the yellow metal.
In her speech Powell said the Federal Reserve will act appropriately for sustaining expansion in the US. And for the same it has two courses of action; one being quantitative easing (QE) and the other as lower rates and both will bode well for gold.
Her speech was not taken well by President Trump who counter-attacked on Twitter by asking whether the Fed chair was a greater "enemy" than China's leader Xi Jinping.
Also, China announced retaliatory tariffs on US goods including cars, auto parts worth about $75 billion. And reacting to it, Trump asked US entities to look at ways to wind up operations in China, which sent stocks crashing and more of inflows into the yellow metal.
By 14:08 pm EDT (1801 GMT), price of spot gold increased 1.9% to $1,526.60 per ounce. Earlier the prices scaled up to $1,528.79, the highest price since gold logged a 6-year high price of $1534.31 per ounce on August 13. US gold futures settled up 1.9% to $1,537.60.
In India, gold prices taking cues from global markets scaled higher by Rs. 1000 per 10 gm for both 22K and 24 K gold on Saturday. 22K and 24K gold is priced at Rs. 37,600 and Rs. 38,600 per 10gm, respectively.