Gold Prices Skyrocket to Highest in Two Months as Dollar Nosedives

Earlier this month, the newspaper South China Morning Post reported that gold prices had been on track for their best year since 2010 amid the US-China trade war.

Gold prices have increased to their highest in more than two months as the dollar plummeted following the Pentagon’s statement about the US military strikes on Hezbollah facilities in Syria and Iraq, Reuters reports.

On Monday, spot gold increased by 0.2 percent to $1,513.29 per ounce. The rise was preceded by gold prices hitting their highest since 25 October to amount to $1,515.80 per ounce,

All this is “overlaid with very low liquidity levels, that are essentially exacerbating the volatility and making these moves appear exaggerated”, he added.

Stephen Innes, a market strategist at AxiTrader, for his part insisted that from a “pure” macro and risk point of view, “it currently makes little sense for gold to be trading above $1,500/oz”.

The comments followed the South China Morning Post reporting that 2019 has been a good year for gold, which traded at a staggering 15 percent higher rate than the year before.

Innes attributed it to geopolitical uncertainty, insisting that “the  main driver of the gold price this year has been lower global interest rates amid heightened geopolitical tension in Europe over Brexit, as well as the trade war between the US and China”.

Sourse: sputniknews.com