The precious yellow metal hit a life-time high of Rs 38,666 per 10 gram last week after it had surpassed the Rs 38,000 mark in August.
Economists predict that the demand for safe haven assets amid uncertain global business environment took the gold price to fresh highs. The recent depreciation of rupee is considered as another key factor which drives Gold prices red hot. The escalation in the US-China trade war fear frantically forces investors to look into safe havens and gold is the immediate answer.
At the Multi-Commodity Exchange (MCX), the October contract of gold hit a life-time high of Rs 38,666 per 10 gram. Indian equity indices registered their worst fall on Tuesday in over a month following the decline in Asian peers as turmoil in Hong Kong and Argentina spooked investors.
Prices have seen a sharp surge after the US Federal Reserve earlier indicated that its 25 basis point rate cut is a "mid-year-adjustment" and not the beginning of a rate cut cycle. Fear of a global recession also played its role in the surging gold prices.
Warning signals are also coming via other reliable indicators of recession: the bond yield curve.