Gold prices rise with demand ahead of Christmas and New Year
Gold prices rose Monday morning in Asia as investors opted for the saf-haven asset ahead of Christmas and New Year holidays.
U.S. Gold Futures inched up 0.25% to $1,484.55 by 10:59 PM ET (3:59 AM GMT), recovering after the dollar steadied the day before. The U.S. Dollar index stayed mostly flat at above 97.
U.S. President Donald Trump said on Saturday that the U.S and China would “very shortly sign their so-called Phase One trade pact.” Under the deal, the U.S. would agree to reduce some tariffs in exchange for a big jump in Chinese purchases of American farm products.
The market is waiting for further developments that would ease prolonged China-U.S. trade tensions.
But until the two countries finally sign the deal, the uncertainty over the China-U.S. trade deal remains. Fears for the global recession and a dovish stance by the Federal Reserve have also supported gold prices to rise around 15% this year.
Furthermore, the Fed left borrowing costs unchanged at its last policy meeting earlier this month and signaled that the U.S. policymakers would not boost the economy soon in 2020. The uncertain economic outlook is expected to weigh on the gold prices next year.