Gold prices USD have surged strongly at the beginning of the year, with risk aversion sentiment dominating the market

Since the beginning of 2026, gold prices in USD have shown a continuous upward trend, currently stabilizing above the $5,000 mark. This rally is not accidental but the result of multiple factors resonating together. Rising geopolitical tensions, increased global economic uncertainty, and central banks’ ongoing accumulation are continuously strengthening market risk aversion demand, attracting large amounts of capital into the gold market.

Three Major Factors Driving Gold Prices in USD Higher

Rising Geopolitical Risks and Safe-Haven Capital Flows

The complex changes in US-China relations and international instability are becoming important catalysts for pushing up gold prices in USD. When political risks increase, investors tend to allocate funds into traditional safe-haven assets like gold. Currently, this risk aversion sentiment remains relatively high, providing sustained support for gold prices.

Opportunities for Gold in a Weakening Dollar Environment

The weak performance of the US dollar index further enhances gold’s attractiveness. Gold prices in USD usually have an inverse relationship with the dollar’s movement; the weaker the dollar, the cheaper gold priced in USD becomes, attracting buyers worldwide. This is one of the key reasons for the current strength of gold prices in USD.

Central Bank Accumulation Fuels the Rally

The continuous gold purchases by central banks worldwide, especially the increased demand from emerging market central banks for gold reserves, provide a steady foundation for the gold market. Analysts and major investment banks have raised their gold price forecasts, with some institutions believing gold could break through current levels in the future.

7-Day Candlestick Technical Review

The gold price trend over the past week is summarized as follows:

Candlestick Interpretation:

• 🟩 Green candle indicates the closing price was higher than the opening price, representing a bullish day
• 🟥 Red candle indicates the closing price was lower than the opening price, representing a bearish day
• The high and low values show the extreme volatility range within the period

These seven days’ movements fully demonstrate typical trending market characteristics—overall upward with intermittent adjustments. Although there were slight pullbacks on Day 3 and Day 5 (red candles), this reflects normal profit-taking near resistance levels. Throughout the cycle, gold prices in USD steadily climbed from 4700 to 4840, an increase of about 3%, confirming the strength of the current upward trend.

Future of Gold Prices in USD: Opportunities and Challenges

Looking ahead, the trajectory of gold prices in USD will depend critically on macroeconomic changes. As long as geopolitical tensions persist and economic uncertainty remains high, safe-haven capital will continue flowing into the gold market, suggesting that gold prices in USD are likely to oscillate at high levels.

However, caution is warranted: if signs of easing international tensions emerge or the Federal Reserve begins implementing more accommodative monetary policies, gold prices in USD could face a correction in the later part of 2026. The normalization of Fed policies could especially exert downward pressure on gold prices in USD.

Overall, the recent strength of gold prices in USD results from multiple safe-haven factors working together. Investors should closely monitor geopolitical developments and Fed policy signals to adjust their expectations and positions regarding gold prices in USD in a timely manner.