Gold Soared to Six-Week Highs in Pre-Holiday Rally

Gold prices soared above $1,500, touching six-week highs, on Tuesday, and are now trading just below this key level, despite the receding global trade tensions in financial markets. At the time of writing, GOLD is trading at a little above $1,499.

While the safe haven appeal of gold had diminished a few days ago after the US and China agreed to sign their phase one deal shortly, the precious metal remains supported heading into 2020 over uncertainty on how things will pan out in the new year. Markets continue to trade with a risk-on sentiment with stock markets, especially Wall Street, touching record highs on trade optimism.

The pre-Christmas rally for safe havens comes amid thin volatility and lack of updates on the trade front as well as lack of economic data releases. Gold rallied as traders decided to buy gold in order to hedge their bets even as equities maintain their bullish run towards the end of the year.