Gold prices rise to new high on China-US trade war, local demand

WITH gold price breaking new records almost every day—the metal has set more than 30 records this year so far—and is nearing the $4,200 mark ($4,147.57/0z around noon IST) for an ounce or for 28.35 grams on Tuesday.

- ENS ECONOMIC BUREAU @ Mumbai

Gold held by our households are worth close to 89% of the national GDP or over $3.8 trillion, according to a recent note by Morgan Stanley when the metal was trading a little over $4,000 and ounce. The yellow metal has gained more than 62% so far this year and 27% last year and 24% in the year before that.

The yellow metal’s phenomenal appreciation, driven currently by latest trade tension between the US and China, continuing demand for the central banks.