Several factors have been affecting the crude prices globally, the major one being a possible deal between Saudi Arabia and Russia to extend the alliance to curb oil production, which could be for 10-20 years and China launching a yuan denominated crude Futures which has resulted in high volumes and volatility.
The trade war and high inflation concerns due to higher crude prices have given a boost to the price of gold.
While trade war concerns have helped precious metals, it has been negative for consumption of metal.
Adrian Ash, Director Research, Bullion Vault said the quarter has been interesting for gold, there has been a change for pattern for it. “It is doing what investors want it to do, which is go up when stocks go down, and at the same time defying the move in real interest rates.”