FX.co ★ XAU/USD, GOLD

XAUUSD M-30 Time Frame Update Data from the Peoples Bank of China (PBOC) showed on Saturday that the central bank continued to buy gold for the 15th consecutive month in January, indicating steady demand despite fiscal concerns in major economies. Last month, China upped its gold holdings by 40,000 troy ounces to 74.19 million, bringing the total value of reserves to $369.58 billion. According to the CME Groups FedWatch Tool, traders are currently pricing in a higher likelihood that the US Federal Reserve will reduce borrowing prices at least once more in 2026. The bets were reaffirmed by last weeks US data, which showed signs of labor market weakness and supported the case for further policy easing by the US central bank. On Saturday, US President Donald Trump threatened to sue his newly appointed Fed Chair nominee, Kevin Warsh, if rates were not lowered. US Treasury Secretary Scott Bessent refused on Thursday to rule out a criminal probe of Kevin Warsh if he continues to refuse to decrease interest rates, raising fears about the central banks independence. Aside from that, the larger dedollarization trend has dragged the US dollar lower for the second day in a row, taking it away from a two-week high reached last Thursday. This, in turn, causes some follow-through flows to the non-yielding Gold at the start of a new week. However, the positive attitude in global equities markets acts as a headwind for the commodity. Gold struggles to benefit from its intraday rally and sits below $5,100 heading into the European session, despite mixed cues. Data released over the weekend showed that the Peoples Bank of China continued its buying binge for the 15th month in January. Furthermore, dovish US Fed predictions and concerns about the central banks independence have pushed the US dollar lower for the second day in a row, adding to the non-yielding yellow metals gains.