Gold breaks 50000 Rs barrier as U.S-China row drives flight to safety

Safe haven gold surged the fresh new high 50000 per 10 gram on Friday for the first time since 2011 as a worsening U.S-China row added to fears over the hit to a global economy already reeling from the coronavirus pandemic.

Spot Gold climbed 0.5% 50960 per 10 gram by 09:45 Pm IST, having earlier hit its highest since Sep 2011.

The top US pandemics expert Anthony earlier said the US coronavirus cases could grow to 100,000 daily without proper social-distancing and other safety measures and that’s going to hit economy badly.

The bullion metal is also getting support from uncertainty on the Hong Kong issue, rising COVID cases and increasing distress in the market.

Concerns about more global economic slowing due to the increasingly acerbic U.S.-China spat is seen as likely to keep global government and monetary support going even longer.

In yet another escalation, China ordered the United States to close its consulate in the city of Chengdu, responding to a U.S. demand for China to close its Houston consulate.

US Treasury Secretary Steven Mnuchin and Fed Governor Powell pledged to do more for the US economy as it battles the enormous fallout from the virus outbreak. Today market participants will focus on PMI numbers from major economies globally and private payroll numbers from the US which will give a hint on the situation of the jobs market in the country.

Non-yielding gold has surged 24% this year, underpinned by low interest rates and stimulus from central banks, which benefits bullion since it is a perceived hedge against inflation and currency debasement.

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