Investing.com - Gold prices rose up on Tuesday in Asia to six-week-high record. U.S. Gold Futures inched up 0.29% to $1,492.95 per ounce by 10:39 PM ET (3:40 AM GMT).
The prices have jumped more than 15% since the end of 2018. It is the biggest annual rise since 2010, when gold prices were up almost 30% amid the global economic decline.
Experts say the rally of the yellow metal is due to geopolitical turmoil and low interest rates.
“The main driver of the gold price this year has been lower global interest rates amid heightened geopolitical tension in Europe over Brexit, as well as the trade war between the U.S. and China,” said Stephen Innes, chief Asia market strategist of AXI Trader.
“Ultimately, the softening global economy as a result of the trade war has forced central banks to lower interest rates which meant the risk-free cost of holding gold versus a lower U.S. treasury yield,” Innes said.
He believes the yellow metal will be traded between $1,300 and $1,600 in 2020, and that the U.S.-China trade talks result, as well as the broader economic outlook may move gold prices.
The prices depends on the U.S-China trade talks progress next month. The U.S. Treasury Secretary Steven Mnuchin has said that the U.S. and China will sign their so-called phase one trade pact early January 2020.