Gold prices hit a more than seven-month high on Tuesday as investors shun riskier assets on worries over escalation in Sino-US trade tensions after the US Justice Department charged China's Huawei Technologies Co Ltd with fraud.
Spot gold rose to its highest since June 14, 2018 at $1,304.53 in morning trade and was firm at $1,303.62 per ounce by 0319 GMT. US gold futures were also steady at $1,302.70 per ounce.
Speaking about gold prices being in a bull market, David Fergusson, chairman of Global Precious Metals, said, “Last year I was sort of hoping for a rally in the year end which we got. So we are pleased about that. It is obviously above the 1,300 levels in dollars right now. Dollar is not the only currency to look at, the fact that it is making near new highs in rupee is a very good thing as well globally. So it is not just the dollar gold swap you have to look at, it is all currencies, and in a lot of other currencies it is looking very strong as well. So that is obviously a good sign.”
“I think personally we are in a bull market phase and we are going to see a move through the $1,400 level this year and that 1,400 in US dollars is a big resistance. Once we go through that, then over the course of the next 18-24 months I think we will test the old highs in dollar terms. Certainly we are seeing that from our customers, I think across the board, whether it is in Europe or our Asian client base, people are bullish on gold on a medium term view,” he added.(With inputs from Reuters)