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Gold looks set to end the year with double-digit gains and is likely to maintain its upward trajectory in 2020.

At press time, the yellow metal is trading at US$1 477 per Oz, representing 15,25 percent gains on a year-to-date basis.

Anything above 13, 2 percent would be the biggest yearly gain since 2010 when prices had rallied by 29,6 percent.

The year gone by will be remembered for the US-China trade war escalation, persistent recession fears and more importantly, for the US Federal Reserve’s remarkable dovish U-turn.

The Fed had raised rates by 25 basis points in December 2018 and pencilled in two rate hikes for 2019.

However, the central bank reversed course in the first quarter and officially confirmed rate hike pause.

The metal gained just 0,76 percent in the first quarter, as the rate hike pause was already priced in the last quarter of 2018, but picked up a strong bid and rose 9 percent in the April to June period with markets increasingly betting on rate cuts.

The Fed reduced borrowing costs by 25 basis points in July – the first rate cut since 2008 – and announced quarter-point reductions in September and October. As a result, gold eked out 4,48 percent gains in the third quarter. — fxstreet.com.