Free Forex Signals

• Gold jumps over 2% as renewed geopolitical tensions revive aggressive safe-haven demand.
• The US Dollar slides to four-month lows amid talk of Yen intervention, amplifying bullion’s upside momentum.
• Traders eye the Fed decision and Powell’s guidance as the next volatility trigger.

Gold (XAU/USD) surges over 2% on Monday, clearing the $5,000 milestone and extending its gains towards $5,100 amid renewed geopolitical tensions and central banks continuing to buy the yellow metal as a diversification of reserves. At the time of writing, XAU/USD trades at $5,095 after hitting a record high of $5,111.

Bullion surges toward $5,100 on trade-war fears, central bank buying

Canada’s Prime Minister Mark Carney’s speech at the World Economic Forum in Davos increased tensions between Canada and the White House. Over the weekend, US President Donald Trump escalated the trade war, threatening to impose 100% tariffs on Canadian products if they negotiate a trade deal with China.

In the meantime, intervention threats by US and Japanese authorities to proper the Japanese Yen, weighed on the Dollar, which has weakened to a four-month low, below the 97.00 threshold, according to the US Dollar Index (DXY). The DXY, which measures the performance of the buck’s value against six currencies, is down 0.44% to 97.04.

US economic data was solid, with the Commerce Department featuring Durable Goods Orders for November. The data was solid, rising more than double of October’s figures, yet overall US Dollar weakness increased Gold’s appeal.

Ahead in the week, traders’ focus shifts to the Federal Reserve’s (Fed) monetary policy decision on Wednesday, alongside the Fed Chair Jerome Powell press conference.