Gold prices rose 1.8% above $1,850 an ounce on Tuesday, as governments plan to ease COVID-19 restrictions for Christmas, which could cost many lives, and as global stock markets seek to extend their rally ahead of this week's Fed meeting, which may prompt higher Inflation in the US.
The price rose even as the pound sterling rallied in the forex market despite no signs of reaching Brexit trade talks, making it more difficult to predict the kind of fiscal stimulus from EU members.
For January 2021 forecasts, gold is expected to turn green at the start of the new year, as portfolios are rebalanced and new positions created. “In the past eight years, January has been largely green,” BNP said.
European bonds rose again on Tuesday, yet, US Treasuries slumped, pushing the yield on the 10-year securities to 0.90% annually from 1.90% in May 2019, failing to outpace the rise in market inflation forecasts.
Meantime, Tuesday's $1850 level was previously the lowest price for gold after the metal hit a new all-time high of above $2,050 an ounce in August.
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