Gold futures settled above $1,500 an ounce for the first time in about seven weeks on Tuesday as defensive positioning bets ahead of the Christmas holiday on Wednesday fueled a resurgence in demand for the precious metals, market experts said.
That marked bullion’s second session of gains and a year-to-date advance of 17.4%, according to FactSet data.
Gold prices on Comex closed an hour early at 12:30 p.m. Eastern Time and will be closed on Wednesday for Christmas.
Trading gains for the precious metal came as U.S. stock benchmarks, which tend to move in the opposite direction of gold prices, have hit recent records — typically, a reflection of strong appetite for assets perceived as risky and away from those viewed as havens.
“Continuing to defy the broader risk-on atmosphere, was gold.” wrote Marios Hadjikyriacos, investment analyst at XM. He said some traders preparing for trade in 2020 view this as good time to purchase some gold to hedge their bets after a strong run for equity indexes.
Stocks gave up early gains in a subdued Christmas Eve trading session.
“After such a strong year, when almost every single asset class was up double digits, this is probably a prudent time to ‘play some defense’ and hedge your risk heading into 2020, especially with gold prices trading at a minor discount relative to recent months,” Hadjikyriacos wrote.
Gold for February delivery GCG20, +1.05% on Comex gained $16.10, or 1.1%, to settle at $1,504.80 an ounce, its highest settlement since Nov. 4, when the most-active contract hit $1,518.60 an ounce, according to FactSet data.
March silver SIH20, +2.01% tacked on 35 cents, or 2%, to settle at $17.85 an ounce, its highest settlement price since Nov. 4, when it finished at $18.22 an ounce, according to FactSet data.
In other metals trading, January platinum PLF20, +0.77% added $4.40, or 0.5%, at $942.80 an ounce. March palladium PAH20, +0.01% advanced $2.80, or 2.8%, to $1,851.80 an ounce. March copper HGH20, +0.59% finished about 0.7% higher at $2.8275 a pound on Monday.