The escalating trade war between the US and China and a shaky global growth outlook has been supporting gold prices in the international markets. Economic indicators are signaling a slowdown in the global economy after Donald Trump administration imposed hefty tariffs on China. The World Bank has also slashed its growth forecast for 2019 to 2.60 percent.
Looking at the shaky outlook, Federal Reserve Chairman Jerome Powell has hinted at the central bank cutting rates to boost growth.
Gold prices have hit the $1,348 level after holding its crucial support of $1,266 on a closing basis. The metal had corrected from a high of $1,356 made in February.
At the MCX, prices have rebounded from the lows of Rs 31,232 to the highs of Rs 32,956.
Looking at the weekly charts, there is a possibility of a long-term breakout above the $1,350 level, which may extend till the $1,360-$1,389 zones in the coming sessions. Prices will turn negative only when the precious metal close…