Industry And Cluster | News & Insights

Gold prices fall due to International tensions

Published: August 18, 2020
Author: G.Thulessiraman

Tension has been mounting between China and US ever since the coronavirus outbreak. Trump calls coronavirus a “plague” which has been unleashed on the world by China. “We were unfairly treated by China because they could have stopped it”, said Trump to the reporters. On Friday, the Trump administration approved the sale of F-16 military jets to Taiwan. On Saturday, Trump indicated certain actions which he will be taking against the Huawei Technology and will also jawbone other countries into avoiding the Chinese firm’s products.

On Saturday, Trump said that, ““China has been buying a lot of — a lot of things, and they’re doing that to keep me happy”. China is buying large amounts of US corn, soybeans and cattle even though bilateral trade talks are kept on hold for now.

Gold prices rose from Rs. 340 to Rs. 53,611 per 10 gram in the national capital on Monday. Silver also witnessed increased buying and gained Rs. 1306 to Rs. 69,820 per kg. Spot gold edged up 0.1% to $1987.51 per ounce by 0114 GMT. US gold futures eased 0.3% to $1993.30 per ounce. The dollar was down 0.2% at an over one-week low, making gold cheaper for those holding other currencies.

Globally gold prices edged up on Tuesday, on the back of a weaker dollar, although gains were capped by a rally in US equities and signs of a recovery in global economic activity. Thus, international tensions have led to a drop in the gold prices in India, thus affecting the international markets.



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