Sina Finance reported on December 30 that although investors target risky assets such as stocks, the trend of gold's quiet rise at the end of the year is gathering momentum; furthermore, some preliminary data shows that the macroeconomic environment in 2020 will be better than this year.

As the dollar fell again and capital flowed further into gold ETFs, gold rose for the fifth time in the past six trading days. This rise has added more brilliance to gold's performance since this year. Since 2019, spot gold has risen 18% and is poised to record the highest closing level since November.

The strong bull market momentum “is mainly due to the weakness of the US dollar,” said Benjamin Lu, an analyst at Phillip Futures in Singapore. “The US monetary policy, which is dominated by dovish policymakers in the FOMC, has significantly weakened the prospects for the dollar while increasing the attractiveness of gold.”

Gold has been strengthening for three weeks, yet one dollar indicator will record its biggest quarterly decline since the first quarter of 2018. After cutting interest rates three times this year, the Federal Open Market Committee (FOMC) is expected to keep its policy unchanged next year. The market will also focus on the Federal Reserve's measures to prevent turbulence in the repurchase market this week.

“In a sluggish trading environment, going lower is the path of least resistance for the US dollar,” said Rodrigo Catril, senior foreign exchange strategist at National Australia Bank in Sydney. “Abundant dollar liquidity — provided by the Federal Reserve — is driving US short-term yields lower.”

Spot gold once rose 0.4% in the intraday period to 1,515.87 US dollars/ounce, the highest level since November 1, 8:31 London time, to 1,513.40 US dollars/ounce. In September, the price of gold hit $1,557.11, the highest level in more than six years. Bloomberg's dollar spot index fell 0.2% to a new low since July; it fell 2.5% during the quarter.