Gold prices rose in early Monday trading, revisiting levels above $5,000. The precious metal is finding support as the US dollar posted fresh losses against other major currencies. The greenback continues to suffer from a diversification strategy away from the dollar adopted by some investors, while expectations of at least two interest rate cuts in 2026 are creating an additional headwind for the US currency. This dynamic is supporting gold prices, reflecting the inverse relationship between the two assets. Against this backdrop, investors are already focused on the release of key US data later this week, including January’s Nonfarm Payrolls report and inflation figures due on Friday. These releases could influence expectations for the Federal Reserve’s monetary policy trajectory and, in turn, the price of gold. Meanwhile, figures released on Saturday showed that the People’s Bank of China increased its gold purchases in January, extending a 15-month buying streak. Continued central bank demand is helping to underpin global demand for the metal and support prices.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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