Gold Rebounds Amid Safe-Haven Demand

2026-01-08 21:31 By Felipe Alarcon 1 min. read

Gold has rebounded and is trading above $4,470 per ounce as a combination of renewed safe-haven demand, persistent rate-cut expectations, and official buying continues to underpin prices.

Escalating geopolitical risk, especially heightened tensions around Venezuela after US actions and broader uncertainty, has driven investors back into bullion as a defensive asset.

At the same time markets still price roughly two Fed rate cuts this year, keeping real yields suppressed and reducing the opportunity cost of holding a non-yielding asset.

Strategic purchases by central banks, with China extending its gold buying streak for a 14th month, have tightened available supply and bolstered structural demand.

Banks such as HSBC and Morgan Stanley have raised or maintained strong price forecasts for 2026 on these same drivers, while firm services data and mixed US labor data have limited aggressive dollar strength, helping maintain supportive conditions for bullion.



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