Gold futures ended more than $1,500 per ounce on the global market late Thursday, highlighting a third straight ascent and the highest finish for the yellow metal since end of October.
Bullish gold investors say that in recent trade, the bullion has gained from questions about the execution of a China trade deal, worries about the consequences of the US Congress' recent impeachment of President Donald Trump, and fears regarding stock market valuations being stretched at least in the U.S.
Gold and silver are soaring as markets brace for the China-US trade deal and Trump's much-hyped court hearing. Physical demand for gold continues to lag behind the demand for investment in the precious commodity, Chintan Karnani, Insignia Consultants chief market analyst, disclosed in a research note on Thursday.
Gold for February delivery on the Comex added $9.60, or 0.5 percent, to end at $1,514.40 an ounce, the highest settlement since October 31, according to FactSet reports. Gold was up 1.1 percent on Tuesday to break at $1,500 above the psychologically significant level.
March silver retreated at 13.7 cents, or 0.79 percent, to settle at $17.99 an ounce, the highest settlement since November 4, FactSet reports. In the previous session, it increased by 2 percent.
Trump said a trade deal was ready to be signed with China in January, and Chinese officials announced that both sides are in close contact with a partial trade agreement.
Gold, however, has been seen as a safe way to hedge the risk of further breakdown in China-U.S. negotiations, or a disappointment with the terms of any deal, say market analysts.
Washington and Beijing officials say a trade accord will be finalized in the near future. Only when trade agreements are signed and details are released will gold and silver crash, Karnani said.
Elsewhere, US Senate Majority Leader Mitch McConnell remains at a stalemate with Democrats over the next steps with regards Trump's impeachment process, which investors have overlooked but which might at some stage inject a measure of volatility into markets, warn commodity experts.
Late-cycle worries are also likely to add to the "fear-driven" demand for gold, according to Sprogis, who expects the precious metal in the first quarter to reach $1,600 an ounce and keep it there for the next 12 months.
However, in the next coming weeks, the demand for gold could be boosted as typical buyers of precious metals pick up bullion as holiday gifts such as the Lunar New Year.
