Gold Weekly Forecast: Volatile Start to 2026 as Markets Assess US Data and Geopolitics
🔥 Key Takeaways
- Gold (XAU/USD) gained bullish momentum as trading conditions normalized after the holiday season.
- The precious metal managed to register weekly gains despite entering a consolidation phase.
- December inflation data from the US and geopolitical developments are expected to drive gold’s action in the coming week.
Gold Starts 2026 on a Volatile Note
After a tumultuous end to 2025, gold started the new year on a positive note, gathering bullish momentum as trading conditions normalized. The precious metal had lost more than 4% in the last week of the year, but it managed to regain some ground as investors returned to the markets.
US Inflation Data and Geopolitics in Focus
The coming week is expected to be volatile for gold, with several key events that could impact its price. The December inflation data from the US is scheduled to be released, and investors will be closely watching the numbers to gauge the Federal Reserve’s next move. A higher-than-expected inflation reading could lead to a rise in interest rates, which could negatively impact gold prices.
Geopolitical developments will also be in focus, with tensions between major nations continuing to escalate. Any signs of conflict or instability could lead to a flight to safe-haven assets like gold, driving up its price.
Technical Analysis
From a technical perspective, gold’s price action will depend on its ability to break through key resistance levels. The $1,900 level has been a major hurdle for the precious metal, and a break above it could lead to further gains. On the downside, support levels at $1,800 and $1,750 will be crucial in determining the extent of any potential losses.
In conclusion, gold’s start to 2026 is expected to be volatile, with US inflation data and geopolitical developments driving its price action. Investors will need to stay vigilant and adapt to changing market conditions to navigate the precious metal’s price swings.
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