The end-of-year gold rally continues at full speed

Gold continues to rise in price, on track to record its best monthly performance since August. Cash flows continue to flow out of the US dollar and flow into gold-traded exchange traded funds.

The euro is also rising for the fourth consecutive day at a falling dollar against all G10 currencies, which also boosts the appetite for gold as an alternative. World gold holdings through ETFs are 6.3 tonnes, reported last week. Gold is up 14% this year - its best performance since 2010.

The strong bullish momentum is mainly due to the weak USD. The Federal Reserve's Dovish position has softened the prospects for the dollar to rise, which in turn has increased interest in gold.

With the Fed cut interest rates three times this year, FOMC has signaled that the bank is ready to end the policy by 2020.

The February delivery futures for COMEX were slightly modified, trading at $ 1,518. In options, call options are February with a strike of $ 1525 being the most active, with 3010 traded contracts. Spot gold went over $ 1515.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

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