Gold prices in India gained on Friday as global markets close their books ahead of the end of the year 2019. On MCX, gold futures were trading 0.11 percent or Rs 43 higher at Rs 38,925 per 10 grams.
In the international market, gold has scaled to over the $1,500 an ounce level. It touched $1,512.30/ ounce in the previous session, its highest price since 4 November. US gold futures were at $1,514.40 per ounce on Friday.
The rally comes despite the recovery in equity markets in Asia and the US on optimism over Beijing and Washington moving closer to a trade deal.
The yellow metal, that has been largely benefited from trade spat between the two largest economies in the world, is estimated to make an overall gain of 15 percent this year, the best since 2010.
Gold prices have typically eased on progress in the deal and vice versa, however, the present rally shows that market investors are looking beyond current factors and wish to remain invested in the metal.
US President Donald Trump told reporters that he and Chinese President Xi Jinping will have a signing ceremony to sign the first phase of their trade deal.
"We will ultimately, yes, when we get together. And we'll be having a quicker signing because we want to get it done. The deal is done, it's just being translated right now," Trump said.
On 13 December, US Trade Representative Robert Lighthizer said that representatives from both countries would sign the Phase 1 trade deal agreement in the first week of January.
The over a year-long dispute between the countries have encountered last-minute fallouts in trade agreements in the past. Investors remain nervous on phase 1 signing as contents of the deal haven't been made public and vast differences still remain between China and the US on several issues.
The Indian rupee was trading at 71.23 a dollar, up 0.09 percent from Thursday's close of 71.32. The domestic currency opened at 71.31 a dollar. A stronger rupee is good for domestic buyers of gold as the yellow metal is largely imported in US dollar to meet local demand in India.