On Monday, prices of gold and silver in India continued their rally from the previous week, touching another new record high on weak sentiments in the global market following the escalation in US-China trade war over the weekend. According to an IANS report, gold price per 10 grams crossed Rs 40,000 in Mumbai, on Monday.

On MCX, October gold futures rose to a new high of Rs 39,340 per 10 gram in an earlier session. Similarly, silver September futures on MCX hit a new life-time high of Rs 45,342 per kg.

In the global market, spot gold jumped to a fresh six-year high. It rose 1.2 percent to $1,544.56 an ounce, its highest since April 2013. US gold futures were up by 1.1 percent to $1,554.90 per ounce in the morning session.

Fresh tariffs issued by the world's two largest economies on each-other's imports worsened fears of a global recession among investors. On Friday, China unveiled retaliatory tariffs on American cars to which US President Donald Trump replied with an additional 5 percent duty on Chinese imports.

To this, the American stocks, saw a significant fall on Friday. Asian stocks reacted on Monday, as the tariffs were announced post market hours in the continent. Japan's Nikkei and MSCI's broadest index of Asia-Pacific shares outside Japan saw a sharp fall.

Further a weakness in currencies of the emerging markets increases burden on buyers of the precious metal in these countries. In India, the rupee opened lower on Monday, making gold pricier.

Among asset management companies in India, assets managed by gold exchange traded funds or gold ETFs saw an increase to Rs 5,079.22 crore in the first four months of 2019-20, according to data from Morningstar.

Gold acts as a hedge against inflation. It is also considered a safe haven asset by fund managers and investors during times of political and economic turmoil.

Market traders are now observing the developments at the G-7 (Group of Seven) Summit, where Trump reportedly said he wished he had raised tariffs on Chinese goods even higher last week.