Gold prices surge to USD 1,550 per ounce, following the flare-up in the US -China trade war

London/New York: Owing to the latest flare-up in the US-China trade war, gold prices have climbed considerably. On Monday, gold prices scaled up to USD 1,550 per ounce mark, setting a new record. Earlier, it was in April 2013 that gold had reached its peak. At the beginning of the month, Gold rates had crossed the USD 1,500 per ounce mark.

There is a consistent rise in the Gold prices from the beginning of this year. The year began with Gold prices at nearly USD 1,280 per ounce. The Gold prices have been consistently rising since and at the end of first six months, the Gold prices had crossed USD 1,400 per ounce level. After crossing the USD 1,400 per ounce level in June, there has been a rise of more than USD 100 in the Gold prices, in the last two months.

Instability in the Persian Gulf, uncertainty regarding Brexit, the policies of the US Federal Reserve and trade war are the main reasons behind the increase in the gold prices. Following the devaluation of its currency Yuan by China, warnings of an impending currency war also are being issued. In this atmosphere of uncertainty, the investors seem to have turned to gold, known to be the perpetual and safe investment. This has increased the demand for gold and has resulted in a huge leap in the Gold rates.

The trade war initiated by US President Donald Trump against China is intensifying by the day. A few days ago, China increased tax on US good imports, worth USD 75 billion. After that, President Trump announced the imposition of new taxes on the entire Chinese goods imports. On the one hand, President Trump is intensifying the trade war, and on the other hand, the Federal Reserve, the US Central Bank is giving mixed indications. Therefore, it is evident from the transactions on Monday, that the investors are taking the shelter of gold.

Only last month, leading analyst David Roche had warned that there would be a massive increase in the Gold rates and the rates may touch the levels of USD 2,000 per ounce (28.5 Grams), by the end of this year.