Gold and silver prices edged higher in global markets today as US and China launched fresh tit-for-tat tariffs on each others goods, boosting the safe-haven appeal of the metal. Spot gold was 0.4% higher at $1,525.86 per ounce, having fallen to a one-week low at $1,517.11 in the previous session. US gold futures were also 0.4% higher at $1,535.10 an ounce. Among other precious metals, silver edged 0.1% higher to $18.36 per ounce.

Despite the sharp rally in gold prices this year, many analysts remain bullish on the precious metal. Veteran investor Mark Mobius believes that investors should allocate about 10% of their assets in physical gold with many central banks across the world going dovish and negative interest rate.

On MCX, gold futures price rose 1% to 39,100 per 10 kg while silver futures jumped 2% to 48,645 per kg.

The US from Sunday began imposing 15% tariffs on a variety of Chinese goods on Sunday, including footwear, smart watches and flat-panel televisions, as Beijing began imposing new duties on US crude.

Though US President Donald Trump said both the sides would still meet for talks later this month analysts say that a high very high level of scepticism about the trade talks will keep the gold prices supported in near term. Escalation in the trade war between the world's biggest economies has heightened fears of a global downturn.

Meanwhile, Reuters reported that hedge funds and money managers have increased their bullish stance in COMEX gold and upped net long positions in silver contracts in the week to August 27.

Besides a global rally, the rupee's depreciation against the US dollar has pushed gold prices in India to record highs.

In India, high prices have hurt demand though jewellers hope for an uptick in demand from an upcoming festival. Despite some correction in domestic gold prices last week, demand remained tepid.

A Reuters report said that dealers offered discounts of up to $24 an ounce over official domestic prices this week, down from last week's $31 discounts. The domestic price includes a 12.5% import tax and 3% GST. (With Agency Inputs)

Close