Gold prices jumped sharply during Asian trading on Friday, marking a strong start to 2026 after a historic rally last year. Renewed demand for bullion was driven by a weaker U.S. dollar and growing expectations that U.S. interest rates will move lower, reinforcing gold’s appeal as a safe-haven and inflation hedge.
Spot gold climbed 1.6% to $4,378.55 per ounce by early Asian hours, while U.S. gold futures rose 1.2% to $4,392.40 per ounce. The gains followed a brief pullback from record highs in the final week of 2025, as investors returned to the market after year-end holidays and reassessed macroeconomic conditions.
The U.S. dollar extended its recent decline, making gold cheaper for investors using other currencies. This currency weakness provided immediate support for precious metal prices and helped revive buying interest after last year’s pause.
Gold recorded an exceptional performance in 2025, surging more than 60% in what was its strongest annual gain in decades. The rally was largely fueled by a shift in U.S. monetary policy, as the Federal Reserve delivered several interest rate cuts. Lower interest rates reduced the opportunity cost of holding non-yielding assets like gold, encouraging both institutional and retail investors to increase exposure. Market expectations of further rate cuts in 2026 continue to underpin bullish sentiment.
Geopolitical uncertainty also remained a key driver. Ongoing conflicts in Eastern Europe and the Middle East, along with broader concerns over global political stability and economic growth, sustained strong safe-haven demand. Central banks, particularly in emerging markets, continued to purchase gold aggressively to diversify reserves and reduce dependence on the U.S. dollar.
Other precious metals also advanced. Silver jumped 3% to $73.30 per ounce, supported by both safe-haven demand and strong industrial usage linked to renewable energy, electronics, and data centers. Platinum rose 2.5% to $2,102.3 per ounce after a stellar rally last year. Meanwhile, copper prices edged higher, reflecting steady optimism around global industrial demand.
With core drivers still intact, analysts see continued support for gold prices in early 2026.


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