The strategic battle between the US and China is very complex and need to be watched carefully, said Mark Mobius, emerging markets fund manager and founder of Mobius Capital Partners LLP, adding that if the situation worsens, investors will look for safety and hence move to gold.

“People are talking about treasuries going to zero interest rates. So if that is the case, where do you hide? What I think is that people are going to start looking for yield, companies that have dividends that pay a yield, that is one thing and the other thing... they are going to be looking for gold," he said in an interview with CNBC-TV18.

“Some of the Congressmen in Washington are really concerned about what is happening in Hong Kong. If this gets worse and for some reason the Chinese move into Hong Kong then you can see the US breaking the tie with Hong Kong which sounds like an enormous gamble but this could happen and that means that you have one big market going into the doldrums,” he added.

First Published:Sept 6, 2019 10:21 AM IST