2026.01.0821:31:08UTC+00Gold Rebounds Amid Safe-Haven Demand

Gold prices have experienced a resurgence, now trading above $4,470 per ounce. This increase is driven by renewed demand for gold as a safe-haven asset, continuous expectations for rate cuts, and official buying activities. Recent geopolitical tensions, particularly involving Venezuela following actions by the United States, coupled with widespread uncertainty, have prompted investors to turn to gold as a protective investment. The market is currently anticipating approximately two interest rate cuts from the Federal Reserve this year, keeping real yields low and diminishing the opportunity cost of holding gold, which does not yield returns. Central banks, notably China, which has extended its streak of gold purchases to 14 consecutive months, are strategically buying gold, tightening supply and bolstering structural demand. Financial institutions like HSBC and Morgan Stanley have either raised or maintained bullish price forecasts for 2026, supported by these factors. Meanwhile, strong services sector data and mixed labor statistics in the United States have tempered the dollar's strength, thereby continuing to provide a favorable environment for gold.