Commodity News
HeadLine : Gold Hits 4-Month Highs as 2020 Starts
Date : Jan 3 2020
The gold bug isn’t giving up. Prices of the yellow metal hit four-month highs on Thursday, continuing their modest but persistent rise into 2020, as investors’ need for a hedge against the risks of the equities rally intensified. Both futures and spot gold cleared the $1,520-per-ounce bar on Thursday, solidifying their hold on the $1,500 perch, as stocks on Wall Street again hit record highs in anticipation the U.S.-China trade deal will be signed in less than two weeks. Gold futures for February delivery on New York’s COMEX settled up $5, or 0.3%, at $1,528.10 per ounce. It hit a session high of $1,533.95 earlier in the day, a peak since Sept. 6. All three of Wall Street’s major indexes hit record highs on the first trading day of 2020, extending their rally from last year, in anticipation that a preliminary U.S.-China trade deal will be signed in less than two weeks. Aside from the phase one deal, stocks were also boosted by news that China had trimmed the reserve requirement of its domestic banks, freeing up the equivalent of $115 billion in liquidity. Gold prices have risen since early December as investors sought a hedge to the streak of record highs on Wall Street. Bullion and gold futures have tacked on more than $65 an ounce over the past three weeks to reclaim the bullish $1,500 perch, despite the Federal Reserve indicating in early December a halt to rate cuts reintroduced after a four-year hiatus.

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