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Mon 26 Aug 2019 11:34 AM

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UAE gold prices continue to hit record highs on back of US-China trade war

Market uncertainty strengthening gold's position as safe haven

UAE gold prices continue to hit record highs on back of US-China trade war
Gold rose over 2 per cent to a six-year high of $1,537 on the Comex in New York on Friday.

Growing uncertainty in the market caused by the escalation of the trade war between the USA and China, continues to push the price of gold up to record levels.

Gold prices reached a new record high this week, with 24 karat at AED185 per gram compared to AED183.25 last week; while 22 karat is now at AED173.25 as opposed to last week when it was trading at AED172.25.

Karim Merchant, group CEO and managing director, Pure Gold Jewellers, told Arabian Business: “The spike in prices is mainly due to the ongoing US-China trade war and US companies being asked to close their operations in China. The Federal Reserve is under pressure from the Trump administration to cut rates but the latest comment from Federal Reserve chairman Jerome Powell does not commit to a rate cut. The uncertainty in the market is strengthening gold's position as a safe haven.”

Gold rose over 2 per cent to a six-year high of $1,537 on the Comex in New York on Friday.

Merchant added: “On a retail level, we have customers who are buying low weight gold jewellery and those who are waiting for the uncertainty over price levels to stabilise.”