Gold futures up on spot demand, trade war fears

Gold futures Monday rose by 0.45 per cent per 10 gram amid fresh fears of escalation of trade war between China and the US.

Marketmen attributed the rise in gold futures to a tariff battle that has rattled world markets, boosting investment demand for the metal considered as a safe bet.

In a series of tweets, US President Donald Trump Sunday threatened to raise tariffs on goods imported from China.

Trump's comments came at a time when Chinese delegation is due to resume talks in Washington on Wednesday to resolve the tariff battle.

Besides, pick up in demand in the domestic spot market also supported the upside in gold prices.

At the Multi Commodity Exchange, gold for delivery in June rose by Rs 141, or 0.45 per cent, to Rs 31,588 per 10 gram in a business turnover of 10,888 lots.

The metal for delivery in far-month August also traded higher by Rs 154, or 0.49 per cent, at Rs 31,750 per 10 gram in a turnover of 4,847 lots.

-PTI