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Gold prices started surging

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Gold prices started surging

Gold prices started soaring on Thursday (August 29, 2019) amidst fears over recession. The demand for the metal started growing during the period of rising political and economical turmoil.

Spot gold rose 0.2% to $1,542.06 per ounce whereas U.S. gold futures were up 0.1% at $1,550.80 an ounce as reported by Reuters.

According to Michael McCarthy, chief market strategist at CMC Markets, Bull markets for gold remain to be on hold until further news on the trade dispute emerges which is the major deciding factor.

“Global growth in the balance here and a resolution (in the trade conflict) would be good for growth and bad for gold,” McCarthy further stated.

If the market constraints tend to weaken, the investors expect that the Bank of Japan could cut rates next month along with the U.S. Federal Reserve and the European Central bank.

Apart from that precious metals, spot silver rose 0.3% to $18.38 per ounce, and platinum added 0.1% to $900.66. Also, Palladium inched up 0.3% to $1,473.56 per ounce.

The SPDR Gold Trust is the world’s largest gold-backed exchange-traded fund and its holdings have gone up by 6.6% this month.

(Reference: Reuters, Yahoo Finance, CNBC)
(Image source: Reuters)