Rolling coverage of the latest economic and financial news, on the final trading day before Christmas
- Introduction: Gold rallies in pre-Christmas trading
- Trade war jitters haven’t gone away
- Quiet start to trading in London
Like King Wenceslas trudging through the snow, the FTSE 250 index is marching slowly higher today.
The index of medium-size listed companies is up 30 points, or 0.13% at 21,872 today, close to last week’s record high.
The jump in the gold price shows that investors are trying to preserve capital in case of turbulence next year, says Marios Hadjikyriacos, investment analyst at XM.
Some headlines overnight that North Korea is thinking about developing new weapons may have helped the move, but the real catalyst is likely that portfolio managers are increasing their defensive exposure.
After such a strong year, when almost every single asset class was up double digits, this is probably a prudent time to ‘play some defense’ and hedge your risk heading into 2020, especially with gold prices trading at a minor discount relative to recent months.