Gold above $5,000: Dollar weakens – US data and Chinese central bank purchases drive price

The gold price rose on Monday morning, once again reaching values above $5,000. The precious metal is finding support as the US dollar once again recorded losses against other major currencies. The Greenback continues to suffer from the diversification strategy of some investors who are turning away from the dollar, while expectations of at least two interest rate cuts in 2026 are creating additional headwinds for the US currency.

This dynamic is supporting the gold price and reflects the inverse relationship between the two assets. Against this backdrop, investors are already focusing on the release of key US data this week, including the January non-farm payrolls report and inflation figures, which will be released on Friday. These releases could influence expectations regarding the Federal Reserve’s monetary policy course and, consequently, the gold price.

Meanwhile, figures released on Saturday showed that the People’s Bank of China increased its gold purchases in January, continuing its 15-month buying spree. Continued demand from central banks is helping to support global demand for the metal and underpin prices.

Ricardo Evangelista – Senior Analyst, ActivTrades

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