$GLD, $XAU, $SLV, $USD, $JPM, $GS, $UBS
Gold rose for a 4th session running, topping 1,500 oz and on pace for its best annual gainer since Y 2010.
The precious Yellow metal marked a 7-wk high on the breakout as investors positioned for Y 2020, with post-Christmas gains coming even as global equities inched higher and US-China trade concerns eased.
The breakthrough 1,500 in the face of new highs in US stocks, a rebound in US Treasury yields and a strong USD “leads to an assumption that bulls will buy in the New Year, so the market is trying to position ahead of time,” said the head of metals derivatives trading at BMO Capital Markets. “It has momentum that is a little mysterious and no one wants to stand in the way.”
The climb comes amid a focus on whether the Fed’s rate-cutting pause will hold next year following 3 reductions in Y2019.
“Without a Dovish Fed pivot, it’s unlikely gold will make explosive gains, but it does appear the market is trying to carve out a new higher trading range,” chief Asia market strategist at AxiTrader, said in a note. That current trend “is a very favorable sign for gold Bulls,” he said.
Gold is up about 18% this year as investors weigh the benefit of havens on the back and forth of the US-China trade dispute and a run of central-bank easing. The latest tick higher came even as President Trump said Tuesday a deal with Beijing is “done.”
Caution needs to be exercised as the bullion markets could be extremely volatile, given the market’s low liquidity profile, especially to the downside as trade news remains positive and equity markets still scaling new heights.
Spot gold advanced 0.7% to 1,510.22 oz at 1:36p in New York, after touching 1,512.68, the highest since 4 November.
Spot silver climbed 0.8% and Platinum gained 1%. Palladium was also higher.
In the futures market, gold for February delivery rose 0.6% to settle at 1,514.40 on the COMEX.
Spot bullion peaked at 1,557.11 in early September, the highest price in more than 6 years. Global holdings in gold-backed ETFs have also expanded in Y 2019.
Heading into the New Year, there are mixed views on gold’s prospects.
Earlier this month, JPMorgan Chase & Co. advised betting on the commodity to slide as the global economy gathers momentum. Among the Bulls, Goldman Sachs Group Inc. and UBS Group AG see prices climbing to 1,600.
Other precious metals have fared well too.
Palladium touched a record 2,000.35 oz last week, and is up 50% this year. Platinum has gained 20% in 2019
Have a terrific Holiday weekend