Spot gold climbed 0.4 percent to $1,273.71 per ounce as at 0639 GMT. The metal hit $1,274.68 in early trade, its highest since June 20.
U.S. gold futures were up 0.5 percent at $1,277.6 per ounce.
• Investors are uneasy about global
“We always see good demand for gold in the year-end. I would not be surprised if we see gold surpass $1,300 in the near future.”
• Asian equities were shaky following a Christmas eve U.S. stocks plunge. Wall Street has dropped sharply in recent weeks on concerns over weaker economic growth, compounded by political instability in the United States after a partial government shutdown.
• The U.S. Senate has been unable to break an impasse over Trump’s demand for more funds for a wall on the border with Mexico, and a senior official said the shutdown could continue until Jan. 3.
President Donald Trump largely laid the blame for economic headwinds on the Fed, openly criticizing its chairman, Jerome Powell, whom he appointed.
• “The latest move on gold should be a stark reminder to investors that gold in any form should be an essential part of any long-term investment strategy as again they yellow metal has proven its weight when markets turn turbulent,” Stephen Innes, APAC trading head at OANDA in Singapore, said in a note.
• Gold prices will head higher in 2019, while the mining sector will see much more consolidation, according to BMO Capital Markets’ updated commodities outlook for next year.
The report projected for gold to rise to $1,260 in Q1, then to $1,300 in Q2 and Q3, before falling back down to $1,270 in Q4.
• Among other metals, silver gained 0.9 percent to $14.86 per ounce, while platinum was up 0.6 percent to $787.49.
Palladium edged 0.1 percent lower to $1,244.60 per ounce.
Reference: Reuters
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