Gold Jumps 17% Recording Best Annual Performance in 2019

Gold prices in global stock exchanges have gained about 17% since the beginning of this year, recording the best annual performance in more than 10 years.

The yellow metal benefited from the trade tensions between the United States and China, which has been going on for about 17 months, and its negative impact on the global economy, to rise on the London Stock Exchange today at more than $1,503.87 an ounce, surpassing the early December estimates of $1,500.

Today, the US gold futures rose 0.2% to exceed $ 1507.40 an ounce, increasing flows on safe havens such as gold and other precious metals.

Meantime, investors turned to safe havens like gold, thanks to the uncertainty surrounding the signing of the trade agreement between Washington and Beijing.

U.S. President Donald Trump said that there will be a signing ceremony with Chinese President Xi Jinping for the first-stage agreement and the chinese President Xi Jinping also confirmed the news.

Gold prices have risen since the beginning of December and until now by about 2.7%, with investors looking to end this trade agreement.

The prices of the precious metal increased as the dollar index approached the highest level in mid-December against a basket of global currencies competing with the US currency.

Yellow metal prices have increased this month as investors remain cautious about trade negotiations between the two giants.

Political uncertainty in the United States, the world's largest economy, has helped to increase the attractiveness of precious metal prices and gold prices achieved gains during the third week in December by more than 1.2%, to record the best weekly gains in more than 3 months.

Gold prices stabilized on December 1 due to weak data from the American manufacturing sector, which added to the fears of an economic slowdown.

Positive economic data in the United States continues to hold back the bullish trend in gold prices, and these data reinforce the strength of the dollar and stock markets.

It is noteworthy that gold prices are highly vulnerable to the rise in interest rates, which increases the opportunity cost for holders of stocks and bonds away from the yellow metal.