Investors in search of a safe haven: Volatility in gold prices takes center stage

On the final trading day of the week, gold per ounce saw a 1.9 percent increase, reaching 5,097.48 dollars, bringing its total weekly gain to 1.28 percent. Recent signs of weakness in data from the US economy, geopolitical developments, and changes in trade policies have driven investor demand toward gold.

US President Donald Trump announced that a 10 percent new customs tax would be imposed on imported goods following the Supreme Court's cancellation of a previous decision, and he signed the relevant document. The court had ruled that the tariffs in question were not in accordance with the law on the grounds that they exceeded the authority granted by the legislation.

Such developments in the economic and political arena, also influenced by ongoing talks on the US-Iran front, are increasing uncertainty in the markets, causing investors to avoid risk and turn to gold.

The movement in gold per ounce has also pushed up gram gold prices domestically. Gram gold showed a 2.07 percent increase on the last day of the week, closing at 7 thousand 183 liras, with a weekly gain of 1.51 percent.

In the US economy, the fourth-quarter growth data came in at an annualized rate of 1.4 percent, significantly below expectations. Economists had forecast 3 percent growth. It was stated that weakening consumer spending and the government shutdown had negative effects on economic activities in this result.

The personal consumption expenditures index, the Fed's preferred inflation indicator, rose by 0.4 percent in December, coming in above expectations. Despite this, expectations remain in the market that the US Federal Reserve will implement two 25 basis point interest rate cuts within the year.

This developing economic and political picture has further strengthened gold's status as a safe haven in global markets.

News Source: 12punto