Gold is now on track to rack up its 5th straight day of gains on the back of geo political factors as well as expectations the US Federal Reserve may not lift rates higher than earlier expected from current levels.
The uncertainties surrounding Brexit, have caused a political storm in the UK and the chances that the country may have a new PM in the Nearest future after Theresa May is ousted has been very supportive for gold at the expense of the Euro and the pound which have suffered as a result of Brexit as well as the potential leadership challenge.
Trade tensions between China and the US also rose to the surface over the last few days and the chances of some sort of agreement being reached before the end of the year now looks pretty remote which has also supported gold.
"Trade tensions remain heightened between the U.S. and China, global equities are under pressure, while Brexit negotiations continue to create uncertainty across markets, keeping gold's safe-haven status intact," said traders from MKS PAMP
One of the main reasons that gold has been subdued in recent months is expectations that the US Federal reserve will continue to act aggressively with regards to raising interest rates next year which makes the US dollar a more attractive investment due to its interest earning ability which gold does not have.
This however may be changing and more and more analysts are beginning to predict that the Fed may not lift rates much higher going into next year and they may be setting the groundwork for this by their recent actions.
This may be the catalyst for gold to really set itself up for a bull run as investors exit the US dollar.
"The Feds have changed the landscape to a more dovish terrain suggesting that they too are turning a little bit risk-averse," said Stephen Innes, from OANDA in Singapore.