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Gold edged into positive territory on Thursday, with bulls attempting to maintain upside momentum in the new year after the yellow metal scored its biggest one-year advance since 2010.
Gold for February delivery on Comex GCG20, +0.48% rose $5.20, or 0.3%, to $1,528.30 an ounce early Thursday, while March silver SIH20, +1.17% gained 15.4 cents, or 0.9%, to $18.075 an ounce.
Gold rose 18.9% in 2019, its biggest annual rise since a 29.7% jump in 2010. Silver rose 15.5% in 2019, its biggest calendar-year percentage gain since 2016.
Gold, which had consolidated in the fall after a strong run-up earlier in 2019, regained momentum in the final leg of 2019, pushing back above $1,500 an ounce.
From a technical perspective, the seeds of the recent gains were sown after gold “left behind the low volatility compression band that held prices between $1,450 and 1,480 for almost two months, giving a clear directional signal,” said Carlo Alberto De Casa, chief analyst at ActivTrades, in a note.
“Moreover, traditionally the first part of the year has often provided positive seasonality for gold. Now it seems that investors are trying to anticipate this movement and it has now moved into the final part of the year. The slowing down of the greenback is another positive element for gold as the dollar is negatively correlated with bullion,” he said.
In other metals trade, April platinum PLJ20, +1.99% rose $19 an ounce, or 1.9%, to $996.80 an ounce, while March palladium PAH20, +0.39% was up $8.70, or 0.5%, to $1,918 an ounce.
March copper HGH20, +0.18% was up 0.2% at $2.8025 a pound.
