Turbulent market makes gold gleam

What are the key drivers for gold this week?

Gold prices clocked a six-month high as investors weighed in on mounting economic and political challenges at the start of the new year. Weak PMI numbers in China have presented worrisome signals on global economic growth in the near future. A prolonged trade dispute between the world's two largest economies has laid disruptive effects on the global supply chain, and exerted bearish effects on economic fundamentals. US political uncertainties and a protracted government shutdown has further negated market confidence as global equities pared off bullish gains from a previous relief rally.

Safe-haven assets shone bright however, as risk-off investment appetite bolstered gold prices by more than 2 per cent this week. Contagion effects from prolonged weakness in global stock markets and fear-mongering have cemented fundamental support levels for the precious metal amid lingering bearish influences. Gold, with its known reputation as a store of value amid turbulent market conditions, gleamed brightly in lieu of heightened economic and geopolitical concerns in the current term.