31 Dec Gold hits three month high to cap best year since 2010
The price of gold reached its highest level in over three months on Tuesday to cap a stellar 2019 performance by the precious metal – its best year in nearly a decade.
Spot gold rose to $1,524.20 per ounce, its highest level since September 25th when gold enjoyed an unusually strong and sustained surge over the summer months. Meanwhile, US gold futures rose 0.4% to $1,524.70 per ounce.
Gold is set to record its best year since 2010 having gained nearly 19% over the last 12 months, predominantly due to an ongoing trade war between the US and China which has put a strain on the global economy.
CMC Markets analyst Margaret Yang Yan said one of the main drivers behind gold’s recent gain is the weakening dollar price, before adding that prices are also rising on bargain hunting in year end.
The dollar slipped against a basket of rivals, making gold cheaper for holders of other currencies
“However, the upside is kind of limited because quantitative easing or rate cutting cycle has come to an end for now and we don’t see a possibility of any rate cuts in 2020,” Yan said.