December 2019 was a month of fluctuation for the gold market, with prices experiencing both highs and lows. The rise in gold prices this year has seen a corresponding rise in demand, as reported by the World Gold Council, with Q2 2019 demand up 8% YoY. The question for investors is whether the gold price will continue to rise.
The average price for gold in December 2019 was 1.480,85 USD an ounce. The lowest was 1.459,81 USD an ounce while the highest was 1.515,23 USD an ounce. Average gold price in 2019 was $1,393.34.
The price of gold in December 2019 was impacted by a variety of factors, including a stronger US dollar, fluctuations in global stock markets, and the continued escalation of trade tensions between the US and China.
At the beginning of December, the price of gold was around $1,550 per ounce. However, as the month progressed, the price dipped, reaching as low as $1,475 per ounce. This dip in the price of gold was largely due to a stronger US dollar, which made gold more expensive for buyers using other currencies.
- The US dollar was particularly strong in December 2019, due to increased optimism about the US economy and a resolution to the US-China trade conflict. In addition to the strong US dollar,
- fluctuations in global stock markets also impacted the gold market in December 2019. As stock markets around the world experienced both gains and losses, many investors turned to safe-haven assets like gold, seeking stability and protection during times of uncertainty. The escalation of trade tensions between the US and China continued to be a source of concern for many investors, further driving demand for gold.
- Lower interest rates also played a role in the price of gold in December 2019. The US Federal Reserve had cut interest rates twice earlier in the year, increasing the appeal of non-yielding gold as a safer investment during times of political and financial uncertainty. Holdings in the world’s largest gold ETF, the SPDR Gold Trust, fluctuated throughout the month, but overall holdings remained relatively stable.
Gold Price end 2020 Outlook Amidst Trade Talks.
Gold has been a popular commodity for traders despite its recent drop in volatility. In the beginning of November, the price of gold saw a sharp decline, but it has been relatively stable for the last few weeks. The current movement in gold prices is being driven by President Trump’s comments on the latest developments in the China trade talks.
Recent moves in the price of gold have been a result of uncertainty in the stock market caused by the ongoing trade tensions between the US and China. However, it is important to remember that these short-term movements in gold prices are only temporary and it is still too early to predict the long-term outlook for the precious metal. It is also crucial to take into consideration the potential obstacles that could affect gold’s performance in the future.
In conclusion, traders should keep a close eye on the developments in the China trade talks and assess their impact on the stock market and economy before making any trading decisions on gold.
Gold prices have seen a remarkable increase of 23% in 2019, the highest in eight years, due to a combination of reduced supply and ongoing purchases by central banks. The demand for gold as a safe-haven asset amid global economic uncertainty and heightened geopolitical tensions has also contributed to the price jump. In addition, the ongoing trade war between the US and China has fueled fears of a global slowdown, further boosting the demand for gold. The silver market also saw gains, with a 21% increase, the BIGGEST since 2010.
Gold 2020 Outlook.
The factors driving the recent gold rally are ongoing, unresolved issues that will likely have a major impact on the gold price. The coronavirus outbreak has also resulted in significant adjustments to the expected gold price in the near future, as outlined in our update. As we look ahead to 2020, market experts predict that gold prices will continue to rise given the ongoing geopolitical and economic risks. The tariffs imposed by the US, even with a potential resolution to the trade war with China, are expected to have a lasting impact on markets and drive prices higher. Additionally, low interest rates will likely support demand for precious metal investments.
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