Gold prices are in a bull market phase, says David Fergusson

Gold prices hit a more than seven-month high on Tuesday as investors shun riskier assets on worries over escalation in Sino-US trade tensions after the US Justice Department charged China's Huawei Technologies Co Ltd with fraud.

Spot gold rose to its highest since June 14, 2018 at $1,304.53 in morning trade and was firm at $1,303.62 per ounce by 0319 GMT. US gold futures were also steady at $1,302.70 per ounce.

Speaking about gold prices being in a bull market, David Fergusson, chairman of Global Precious Metals, said, “Last year I was sort of hoping for a rally in the year end which we got. So we are pleased about that. It is obviously above the 1,300 levels in dollars right now. Dollar is not the only currency to look at, the fact that it is making near new highs in rupee is a very good thing as well globally. So it is not just the dollar gold swap you have to look at, it is all currencies, and in a lot of other currencies it is looking very strong as well. So that is obviously a good sign.”