Gold rises to the highest level in 3 months

Gold bars. Reuters

Arab and international

Economy News – Baghdad

Gold prices jumped to their highest levels in more than three months, Tuesday, thanks to the weakness of the dollar, while the yellow metal is heading to achieve the best annual performance in about ten years, while palladium rose towards achieving gains for the fourth year in a row.

And gold in spot transactions reached its highest level since September 25 at $ 1525.20 and increased 0.6 percent to $ 1524.44 an ounce by 0727 GMT. US gold futures rose 0.6 percent to $ 1,527.60.

The precious metal has gained about 19 percent this year, its biggest gain since 2010, mainly driven by the US-China tariff war, which launched a monetary easing process by major central banks.

The dollar index, which tracks the performance of the US currency, fell against a basket of competing currencies, which reduces the cost of gold to holders of other currencies.

The Federal Reserve has cut interest rates three times this year before it stops. Lower interest rates reduce the opportunity cost of holding the yellow metal, which does not yield a return.

On the trade front, White House trade adviser Peter Navarro said on Monday that a one-stage deal is likely to be signed next week.

Gold was also supported by Asian stocks, as investors reap profits after a year full of gains.

As for other precious metals, silver rose 1.1 percent to $ 18.10, and is preparing for the best annual performance since 2010, up nearly 17 percent.

The platinum gained 1.4 percent to 971.09 dollars and is heading for gains of about 23 percent for the year, the best annual performance since 2009.


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