Gold's drivers and price performance

Gold is used as a safe-haven, as its price often rallies during periods of uncertainty. Gold is both pro-cyclical and counter-cyclical. 

Investment drivers tend to influence heavily short- and medium-term price movements. But long-term price dynamics respond to consumer demand, long-term savings, central bank demand, and supply dynamics. 

The factors that influence gold can be grouped into four big themes:

Currencies – strength and weakness of the US dollar and various currencies

Economic growth and market uncertainty – inflation, interest rates, income growth, consumer confidence, tail risks

Tactical flows – price momentum, derivatives positioning 

Additional demand and supply dynamics – mine production, idiosyncratic demand-side shocks.