Gold prices remained firmly supported in global markets as broader macro and geopolitical factors continued to favour safe-haven assets. Confidence in U.S. financial assets has shown signs of fading, while persistent geopolitical tensions and elevated global economic uncertainty have reinforced demand for bullion.
Market participants continue to factor in a cautious Federal Reserve stance, with interest rates widely expected to remain unchanged at the January policy meeting. At the same time, expectations of two rate cuts in the second half of 2026 have provided additional support to gold prices. Recent U.S. PCE inflation data largely met expectations, reinforcing the view of near-term policy stability.
On the geopolitical front, developments surrounding Greenland helped ease immediate tariff-related concerns, though uncertainty continues to linger. Gold fundamentals also remain strong, with London vault holdings rising 2.24% month-on-month, indicating sustained investor interest.
Major global banks have turned increasingly bullish on gold. Goldman Sachs, Commerzbank, HSBC, and UBS have all raised their 2026 gold price forecasts, citing strong safe-haven demand, rising global debt levels, a weaker U.S. dollar, and increasing private-sector diversification into gold.
Central bank buying remains a key pillar of support, led by countries such as China and Poland, highlighting continued official-sector accumulation and reinforcing the longer-term structural strength in gold prices.
