🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

CORRECTED-PRECIOUS-Gold rises above $1,500 level as investors await trade deal signing

Published 26/12/2019, 10:22 pm
© Reuters.  CORRECTED-PRECIOUS-Gold rises above $1,500 level as investors await trade deal signing
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PL
-
XPD/USD
-

(Corrects to read in nearly two months, paragraph 1)

* Gold prices flipping from bearish to bullish trend - analyst

* Silver hits highest since Nov. 5

* Platinum climbs to over 1-1/2-month high

* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

By Asha Sistla

Dec 26 (Reuters) - Gold prices rose above the key $1,500 per ounce level on Thursday to hit their highest in nearly two months, as uncertainty around the signing of a trade deal between the United States and China boosted safe-haven flows into the metal.

Spot gold XAU= rose 0.3% to $1,503.16 per ounce by 0709 GMT. Prices hit their highest since Nov. 5 earlier in the session at $1,505.32. U.S. gold futures GCcv1 were up 0.2% to $1,508.00 per ounce.

"The data was weak before Christmas from the U.S. and we haven't seen anything signed or concrete yet in terms of the phase one trade deal ... so the market is unsure whether that will come true," said Brian Lan, managing director at dealer GoldSilver Central in Singapore.

China's Commerce Ministry said on Thursday that Beijing and Washington were still in the process of completing necessary procedures while maintaining close communication to sign the deal. President Donald Trump said on Tuesday there would be a signing ceremony with the Chinese President Xi Jinping for the first phase of the agreement. concerns over growth remained as data on Monday showed that new orders for key U.S.-made capital goods hardly rose in November and shipments fell, suggesting business investment will probably remain a drag on the economy in the fourth quarter. data from the United States is keenly watched for cues on the central bank's future monetary trajectory. Gold is sensitive to rising interest rates, which lift its opportunity cost.

The metal has gained about 17% so far this year and is on track for its best year since 2010, due mainly to the protracted tariff dispute and its impact on the global economy.

"The catalyst for next year is the U.S.-China trade friction with many unsolved issues, then there's Brexit by January end and the U.S. election in November - all these uncertainties could lead to a temporary spike in gold prices," said Margaret Yang Yan, a market analyst at CMC Markets.

"Technically, gold prices have broken out above and trending upwards. It's flipping from a bearish to a bullish trend."

Among other precious metals, silver XAG= firmed 1% to $17.95 per ounce, after having hit its highest since Nov. 5 earlier in the session at $18.01.

Platinum XPT= advanced 1% to $947.85, after having touched its highest since Nov. 4 earlier in the session at $954.03 per ounce, while palladium XPD= rose 0.6% to $1,894.08 per ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.