The yellow metal which in the past remained steady at around levels of $15000 per ounce in the international market has again scaled to a one-month high as the US-China trade talks which were to begin on Thursday have again stalled. And this development moved investors to take gold's shelter as equities wobbled in trade.
In accordance with the SCMP report, Vice Premier Liu He who headed the Chinese delegation left a day after minister-level meetings and not as originally planned on Friday. So, without much progress in the deputy-level talks, the fate of the bruising tension still needs to be seen. The US President said that he expected Beijing wanted to crack a deal more than the US. The nonetheless Chinese government did not expect a breakthrough from this meet, which was upset with the blacklisting of Chinese companies particularly artificial intelligence startups.
So, with no outcome in sight, the US will levy 30% tariff on Chinese goods worth $250 billion from October 15.
In the spot market, gold surged by 0.4%to $1,511.24 an ounce as of 0049 GMT. US gold futures gained 0.3 per cent to $1,516.50.
Back home, on the MCX, gold December contract fell by Rs. 35 to trade at Rs. 38,462 per 10 gm.
In view of the ongoing slowdown across sectors as well as a substantial increase in the gold price this year, there is expected a fall in demand by as much as 50% during the Diwali festivities.