Due to trade tensions between the US and China and the reduction in interest rates by central banks across the world, gold can cross 40 thousand rupees per ten gram by Diwali. This time Deepawali is falling on 27 October. In Delhi, gold was at Rs 38 thousand 670 per ten grams on Saturday. Gold has touched 38,000 level in futures trading in October on Multi Commodity Exchange. Experts say that due to economic and political instability at the global level, the yellow metal is steadily increasing.  Anuj Gupta of Angel Broking says that even though the US-China trade relationship has shown some moderation, but the global scenario is negative, the price of gold may touch the 40,000 mark during Diwali. In the fear of volatility and economic slowdown in the stock markets, investors are turning towards gold. The bond market is also showing signs of economic slowdown. Exports to big countries are also declining, which is not a good sign. People are considering it as a sign of recession. Market rolled down due to trade war, yellow metal foil
Investor firm Morgan Stanley says the trade war intensifies until the US presidential election and the US decides to impose a 25 per cent import duty on China's products, so in the next three quarters we can see the global economy is heading towards a recession. Anticipating a period of instability, demand for gold and other precious metals is increasing and central banks are also increasingly increasing gold reserves. This period of boom may last for a long time.