Xelans
January 26, 2026Gold purchasing continues unabated for the sixth consecutive day, driven by ongoing safe-haven demand.
The ‘Sell America’ strategy significantly impacts the USD, further benefiting the XAU/USD pair.
Dovish expectations from the Fed are contributing to the upward movement ahead of the FOMC policy meeting.
Gold aims to extend its record-setting rally beyond $5,100 as safe-haven demand remains strong.
Gold (XAU/USD) reaches a new all-time high during the early European session on Monday, with bulls eager to capitalize on the six-day uptrend beyond the $5,100 threshold, supported by a favorable fundamental environment. Ongoing geopolitical tensions and trade-related uncertainties are pivotal in driving safe-haven investments towards this precious metal. Furthermore, the anticipation of additional policy easing by the US Federal Reserve (Fed), continued purchases by central banks, and unprecedented inflows into exchange-traded funds are fueling the commodity's unyielding ascent.
In the meantime, increased economic and policy risks associated with US President Donald Trump's tariff threats have reignited the 'Sell America' trade, causing the US Dollar (USD) to plummet to its lowest point since September 2025. This development further enhances the appeal of Gold and reinforces the positive short-term outlook. Traders are now awaiting the results of a two-day FOMC meeting on Wednesday for insights into the Fed's rate-cut trajectory, which will significantly influence USD price movements and provide renewed momentum to the non-yielding yellow metal.
The recent brief escalation of tensions between the United States and NATO regarding Greenland has raised concerns about trust within the alliance. Additionally, Ukraine and Russia concluded a second day of US-mediated discussions in Abu Dhabi on Saturday without reaching an agreement.
Furthermore, US President Donald Trump announced on Saturday that he would impose a 100% tariff on Canada if it proceeds with a trade agreement with China. This situation continues to propel safe-haven Gold to unprecedented heights for the sixth consecutive day on Monday.
This development is compounded by the ongoing trend of de-dollarization and expectations that the US Federal Reserve will reduce interest rates two more times in 2026, which has led to the US Dollar falling to a four-month low and serves as another factor benefiting the precious metal.
China's central bank has prolonged its gold acquisition spree for a fourteenth consecutive month in December. Moreover, central banks from emerging markets – including the National Bank of Poland, Reserve Bank of India, and Central Bank of Brazil – have been active purchasers through early 2026.
In addition, global investment demand for gold via exchange-traded funds surged by 25% in 2025. In fact, gold reserves rose to 4,025.4 tonnes from 3,224.2 tonnes in 2024, while the total Assets Under Management in ETFs reached $558.9 billion.
The 'Sell America' sentiment has gained traction in recent weeks due to the Greenland tariff dispute, the US government's criticism of the Federal Reserve's independence, and persistent worries regarding government debt levels. This further supports the commodity.
Market attention is now directed towards the eagerly awaited two-day FOMC meeting, commencing on Tuesday. The Fed is set to announce its decision on Wednesday, although the emphasis will be on the accompanying statement and the post-meeting press conference.
Comments from Fed Chair Jerome Powell will be closely examined for indications regarding the future policy trajectory, which will influence the USD and the non-yielding yellow metal. Meanwhile, US Durable Goods Orders may present short-term opportunities on Monday.
The ascending channel originating from $4,464.07 supports the ongoing uptrend, with resistance located around $5,099.04. The XAU/USD pair remains near the upper boundary, where upward movements typically encounter resistance. A definitive breakout could lead to further gains, while a rejection at this level would confine the advance within the channel.
The Moving Average Convergence Divergence (MACD) line is positioned above the Signal line and above the zero mark, with the expanding positive histogram indicating a strengthening bullish momentum. The Relative Strength Index (RSI) is at 80.76, reflecting overbought conditions that may signal an impending pause. If momentum diminishes, support is found at the channel floor near $4,932.75. Maintaining this support would uphold the bullish framework, whereas a significant break below would indicate a more profound corrective phase.
