Gold hits 6-month high as investors seek safe haven

Gold prices rose on Thursday to their highest level in more than six months as investors worried about the global growth and equity markets volatility sought refuge in the yellow metal.

Spot gold touched its highest since June 15 at $1,290.09, and by 11:25 AM Riyadh local time the yellow metal was trading at $1289.3 an ounce, nearing the psychological level of $1,300.00.

“Gold prices are moderately up and scored a six-month high, on more safe-haven buying interest amid a still very wobbly US stock market,” said Jim Wyckoff, Senior Analyst at Kitco.com.

Global equities are reacting negatively to more weak economic data coming out of China, the world's second-largest economy.

The Caixin manufacturing purchasing managers index (PMI) fell to 49.7 in December, showing contraction in the sector (below 50.0) for the first time in a year and a half, he said.