Key Moments
- XAU/USD trades around $4,915 after hitting a new all-time high at $4,967 and is poised for a 6.5% weekly advance.
- This week, the US Dollar has weakened broadly, with the largest loss shown against the New Zealand Dollar and strength only versus the Japanese Yen.
Gold Holds Near Record Territory After Four-Day Surge
Gold (XAU/USD) is trading around $4,915 at the time of writing, little changed on the day after a four-session rally that propelled it to a new record high of $4,967. Despite the modest intraday pullback, the metal continues to show a strong bullish profile and is on course for a 6.5% gain for the week.
The broader precious metals complex remains supported by a softer US Dollar. The deterioration in relations between the US and the European Union amid tensions over Greenland has damaged the perception of the US as a global leader, fueling what has been described as a “Sell America” trade. Although Trump softened his stance toward Europe at the Davos Forum and highlighted an understanding with NATO concerning the Arctic Island, regaining the trust of the US’s primary trading partner is expected to be challenging.
Technical Picture: Uptrend Intact Above Prior Highs
From a technical perspective, XAU/USD has eased off its latest peak but is still trading comfortably above its earlier record levels around the $4,880 area. While some indicators are starting to tilt lower, they remain at readings consistent with ongoing bullish momentum. The 100-period Simple Moving Average (SMA) continues to slope higher, and spot prices are holding well above this benchmark.
On the 4-hour chart, the Moving Average Convergence Divergence (MACD) histogram remains in positive territory, even as it shows a moderate narrowing. The Relative Strength Index (RSI) has slipped back from overbought territory, indicating that the recent setback is more characteristic of a constructive pause within the broader uptrend.
Upside progress has been capped near the 127.2% Fibonacci expansion of the January 16-21 advance, located in the $4,970 zone, just below the psychologically significant $5,000 mark. This round number is likely to serve as a key test of the sustainability of the current rally. On the downside, initial support is seen at the former record high of $4,888, followed by the January 21 low at $4,775.
(The technical analysis of this story was written with the help of an AI tool.)
US Dollar Performance Against Major Currencies This Week
The following table summarizes this week’s percentage changes in the US Dollar (USD) against major currencies. Over the period, the US Dollar showed relative strength only versus the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -1.31% | -1.29% | 0.28% | -0.94% | -2.64% | -2.78% | -1.29% | |
| EUR | 1.31% | 0.02% | 1.60% | 0.37% | -1.35% | -1.49% | 0.02% | |
| GBP | 1.29% | -0.02% | 1.35% | 0.36% | -1.37% | -1.51% | 0.00% | |
| JPY | -0.28% | -1.60% | -1.35% | -1.20% | -2.89% | -3.02% | -1.54% | |
| CAD | 0.94% | -0.37% | -0.36% | 1.20% | -1.69% | -1.84% | -0.35% | |
| AUD | 2.64% | 1.35% | 1.37% | 2.89% | 1.69% | -0.14% | 1.39% | |
| NZD | 2.78% | 1.49% | 1.51% | 3.02% | 1.84% | 0.14% | 1.54% | |
| CHF | 1.29% | -0.02% | -0.01% | 1.54% | 0.35% | -1.39% | -1.54% |
The heat map illustrates percentage moves of major currencies relative to one another. The base currency is listed in the left-hand column, and the quote currency appears in the top row. For instance, selecting the US Dollar as the base currency on the left and moving horizontally to the Japanese Yen shows the percentage change for USD (base)/JPY (quote).
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