Gold hits all time high of Rs 38,070 per 10 gram

Gold prices on Wednesday surpassed the Rs 38,000 per 10 gram mark for the first time ever, amid heightened trade tension between US and China and marked slowdown in global economic activity.

Gold has seen a sharp surge in demand as a safe haven asset, ever since the US Federal Reserve's statement that the first rate cut since 2008 was not the beginning of a rate cut cycle.

At the Multi-Commodity Exchange (MCX), the October contract of gold was trading at Rs 37,956 per 10 gram before it hit a life time high of Rs 38,070.

Prices of the precious metal surged after the US last week announced fresh tariffs on Chinese products. Later, China decided not to buy US agricultural products as a response to this escalation.

On Wednesday, the Reserve Bank of India's Monetary Policy Committee (MPC) lowered the economy's projection of real GDP growth to 6.9 per cent for 2019-20 from 7 per cent earlier.

The downward adjustment in the GDP growth projection, RBI Governor Shaktikanta Das, said was warranted by various high frequency indicators pointing to weakening of both domestic and external demand conditions.