Gold prices have hit a fresh high for 2019. The yellow metal crossed the $1555/ounce today on intensifying trade tensions between the US and China. Year-to-date, the metal’s returns stands at a high 21 per cent now.
In India, given a sharp drop in rupee, gold prices have scaled even higher. On MCX, the gold futures is at Rs 39,319, up 1.4 per cent now over Friday’s close.
China on Friday announced retaliatory tariffs of between 5-10 per cent on $75 billion of US goods. It also said that a 25 per cent tariff on
Related news:China to impose new tariffs on $75 bn of US products
After China’s fresh moves on tariffs, Trump took to twitter making a series of comments that sent global markets into jitters.
US treasury yields drop
The US 10 year treasury yield has witnessed a sharp slide. It is at 1.4543 per cent, down from 1.6131 on Thursday. The 2-year treasury yield is at 1.4588. The spread between the 10-year Treasury yield and the 2-year yield inverted multiple times throughout Friday – which sent alarm bells ringing for investors as this is a sign of recession.
There are now expectations that the Federal Reserve will be under pressure to cut rates in its next meeting and start a rate easing cycle. Currently, the Fed fund futures show market expectations for a 25 basis points rate cut on September 18th.