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Gold prices rose to their highest in more than two months on Monday in thin year-end trading as the dollar dipped and US military strikes in the Middle East supported safe-haven buying.
Spot gold was up 0.2 percent to $1,513.30 per ounce at 0757 GMT after hitting its highest level since Oct. 25 at $1,515.80. US gold futures were down 0.1 percent at$1,516.90.
“We are looking at pre-positioning for next year and a rebalancing of portfolios ahead of year-end, overlaid with very low liquidity levels, that are essentially exacerbating the volatility,” said Ilya Spivak, a senior currency strategist at DailyFx. Gold is receiving modest support from the US air strikes in the Middle East, Spivak said.
The US military on Sunday carried out air strikes in Iraq and Syria against an Iran-backed militia group.
Gold is considered a safe investment in times of geopolitical and economic uncertainty. The dollar also slipped against a basket of rivals, making gold cheaper for holders of other currencies. Gold prices have risen nearly 18 percent this year and are on track for their best year since 2010, mainly due to a 17-month-long Sino-US tariff war and its impact on global economic growth.
(TDS)
