Fundamental Comment

Gold set for worst monthly performance in 3 years

Gold set for worst monthly performance in 3 years

Gold prices rose slightly during Friday's trading session, but the precious metal was headed for its worst monthly performance in 3 years.

The gold took some advantage of the renewed trade uncertainty between the world's two largest economies due to conflict over Hong Kong protests.

As of 08:20 GMT, spot gold hovered around $1,457 an ounce, where the precious metal hit the highest level today at $1,459.

The lowest level this week was hit at $1450, the lowest since November 11, noting that the yellow metal is on course for its worst monthly performance in three years.

The precious metal is heading for a loss of about 4 percent in November, which would be the biggest loss since November 2016.

However, gold, which mainly rallies during times of economic or political uncertainty has gained, so far, more than 13 percent in 2019, largely due to the elevating US-China trade war.

Gold benefited from the signing of two bills by the United States to protect protesters in Hong Kong have angered China by considering intervention in its own internal affairs.

The U.S President Donald Trump said in a statement issued by the White House on Wednesday that he signed the bills out of respect for Chinese President Xi Jinping and the people of Hong Kong.

The Senate passed a version of the bill earlier this month and the House of Representatives approved another version in October.

This monthly performance is due to the fact that hopes of a U.S.-China trade deal boosted demand for risky assets and the dollar at the expense of gold.

Meanwhile, the main dollar index, which monitors the performance of the U.S dollar against six other major currencies, surged 0.01 percent at 98.29.

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