Gold dips below $1500
End to the yellow metal’s bull run?
The price of gold has dropped below $1,500 (£1150, €1340) an ounce. Having enjoyed a bull run this year, peaking at $1553.10, investors are unsure as to how the yellow metal will perform into 2020.
Gold for December delivery on Comex fell $8.20 by 0.6 per cent, to $1,487.60 (£1155.43, €1339.29) an ounce.
Strategists have argued various reasons for the fall in price. Gold demand for this year’s Diwali, the Hindu festival of lights, is lower than previous years. However, while this is a contributing factor, others say that gold’s price has been affected more by geopolitical events than religious ones.
During volatile periods, gold tends to perform well, and investors turned increasingly to safe-haven assets following the worsening of the U.S.-China trade war and continued Brexit uncertainty.
However, with British prime minister Boris Johnson and the European Union reaching a Brexit compromise and U.S. president Donald Trump expected to sign the first phase of a partial trade deal in the near future, investors are now less cautious.
Some volatility is expected this week however, as goldbugs closely monitor the meeting of the U.S. Federal Reserve. Many observers predict that Fed Chair Jerome Powell will announce a 0.25pc interest rate cut on Wednesday.