Gold prices shining at year-end
December 31, 2019
The price of gold climbs to a fresh monthly high ($1520) following this weekend’s US airstrikes in the Middle East at multiple locations across Iraq and Syria where Iran purportedly has stored weapons and munitions. Meanwhile, markets continue to wait for confirmation on the US-China trade deal signing, which was announced a couple of weeks...
The price of gold climbs to a fresh monthly high ($1520) following this weekend’s US airstrikes in the Middle East at multiple locations across Iraq and Syria where Iran purportedly has stored weapons and munitions. Meanwhile, markets continue to wait for confirmation on the US-China trade deal signing, which was announced a couple of weeks ago. During a recent call between President Xi Jinpingand and President Donald Trump, it was emphasized that “all parties should meet each other halfway, and maintain dialogue and momentum for the relaxation of the situation,” but it seems as though the Trump administration will continue to rely on tariffs and sanctions.
Gold prices are set to post their best year since 2010, having gained about 18%, mainly driven by a tariff war between the world's two largest economies and quantitative easing by major central banks. Investor interest in gold has surged this year due to a raft of geopolitical uncertainties, including protests in Hong Kong and tensions on the Korean peninsular, as well as a long-drawn Sino-U.S. tariff war impacting global economic growth.