· Dec 30 (Reuters) - Gold prices gained on Monday as global economic growth concerns kept prices propped above $1,500 an ounce and expectations of a U.S.-China trade deal reduced safe-haven buying of the weakening dollar.
· Spot gold rose 0.3% to $1,515.26 per ounce as of 1:32 p.m. ET (1832 GMT). Prices added 2.2% in the previous week, marking their best week since early August.
U.S. gold futures settled unchanged at $1,518.60 an ounce.
· "The major driver behind gold’s appreciation is the dollar weakness," said FXTM analyst Lukman Otunuga, adding that bullion could extend gains into 2020 if trade developments between the two nations turned south.
"We haven’t heard the details (of the deal) yet and at the same time it has not been signed on paper."
· Thin end-of-year volumes exacerbated the broad weakness in the dollar, which dipped for three straight sessions, and on Friday suffered its biggest one-day fall since March.
Although the finer details of the agreement have not yet been disclosed, the South China Morning Post reported on Monday that Chinese Vice Premier Liu He will visit Washington this week to sign the pact.
· Gold has gained about 18% in 2019 on the back of global recessionary fears, triggered by the long-drawn out trade spat between the world's two largest economies, and quantitative easing by major central banks.
· "As long as gold is able to keep above this psychological level of $1,500, we will see gold challenging $1,535 and $1,550 during the first quarter of 2020," FXTM's Otunuga said.
· Indicative of investor sentiment, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.1% to 893.25 tonnes on Friday, their highest since Nov.29.
· "Gold has punched through the $1,500 level over the past week and is approaching a two-month high following a technical breakout, supplemented by a weakening dollar," said INTL FCStone analyst Rhona O'Connell in a note.
· Amongst other precious metals, silver added 1% to $17.93 an ounce and platinum jumped 1.6% to $960. Palladium inched 0.2% higher to $1,908.58.
Gold rises to 3-month high, set for best year since 2010
· Gold rose to its highest level in more than three months on Tuesday, capping its best year in nearly a decade, on weakening dollar and year-end buying in thin-volume trading.
· Spot gold hit its highest since Sept. 25 at $1,524.20 and was last up 0.5% to $1,522.89 per ounce by 0405 GMT. U.S. gold futures rose 0.4% to $1,524.70.
· Bullion is set to post its best year since 2010, having gained nearly 19%, mainly driven by a tariff war between the world’s two largest economies and quantitative easing by major central banks.
· “One of the main drivers behind gold’s gain is the weakening in the dollar,” said Margaret Yang Yan, a market analyst at CMC Markets, adding 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.
· The U.S. Federal Reserve cut interest rates three times this year before agreeing to pause. Lower interest rates reduce the opportunity cost of holding the non-yielding bullion.
· On the trade front, a Phase 1 deal was likely to be signed next week, White House trade adviser Peter Navarro said on Monday.
· “With liquidity much reduced in Asia, there is some potential for gold to spike higher on low volume with some risk hedging added into the mix,” said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA in a note. “The next resistance is at $1,535 an ounce.”
· Asian shares slipped as investors locked in gains.
· Speculators raised their bullish positions in COMEX gold contracts in the week to Dec. 24.
· Elsewhere, palladium rose 0.2% to $1,910.31 per ounce. Plagued by sustained supply deficit, it was the biggest precious metal gainer this year with a gain of over 51%, its best since 2017.
Price of the metal, used mainly in catalytic converters in vehicles, rose to a all-time peak of $1,998.43 on Dec. 17.
Silver rose 1.1% to $18.12, and was poised to register its best year since 2010, rising about 17%.
Platinum gained 1.4% to $971 and for the year was set to gain about 23%, its best since 2009.
Reference: CNBC, Reuters
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