The price of gold has started the week on the front foot. It settled down after some big price swings at the end of last week, mostly because of renewed haven demand and strong fundamental support.
Right now, gold is trading at about $5,070/oz. That is an increase of roughly 1.45% today. At its highest point so far, the price reached nearly $5,080/oz.
US Dollar Index (DXY) vs Gold (XAU/USD)
Source: TradingView
China buying spree continues
China’s central bank, the People’s Bank of China (PBOC), continued to grow its gold reserves for the 15th month in a row this January. By the end of the month, the country’s total holdings reached 74.19 million ounces.
Because gold prices fluctuated so much recently, the total value of these reserves jumped significantly, rising from about $319 billion to nearly $370 billion in just one month.
While gold is typically a "safe" investment during times of trouble, it had a very rocky start to the year. Prices hit a record high of nearly $5,600 per ounce in January due to heavy betting by investors.
However, this surge crashed quickly after Kevin Warsh was chosen to lead the US Federal Reserve, among other factors which sent prices tumbling down to around $4,403 by early February.
In terms of how people in China are using gold, the trends are mixed.
Overall gold use fell for the second year in a row in 2025, dropping about 3.75%. Despite this general decline, people are rushing to buy physical gold bars and coins as a way to protect their wealth.
Demand for these items spiked by over 35% last year, and they now make up more than half of all the gold bought in the country. This shows that while the PBOC has gone through phases of pausing and restarting its purchases, the general public remains very interested in gold as a safety net.
US Dollar faces headwinds at the start of the week
The US dollar has started the week on the back foot due to two main reasons. First, market participants are feeling more confident and are putting their money into "riskier" investments like stocks instead of holding onto the dollar. For example, big American tech companies recovered well last week, and stock markets around the world are doing great, which appears to be pulling money away from the dollar.
Second, things are not looking as strong back at home in the United States. Recent reports showed that the job market is weaker than people expected. Because of this, investors are waiting to see if the Federal Reserve will change its plans or worry more about unemployment.
This combination of better opportunities abroad and disappointing news at home is pushing the value of the dollar down with major data reports ahead.
US data ahead: NFP and CPI could provide a catalyst
A busy week for US data could be a catalyst for gold bulls or could prove to be a thorn in the side. The question on the mind of market participants is which will it be?
First, we will get the NFP and jobs report on Wednesday with unemployment also a key metric to keep an eye on. The recent uptick and recovery has given market participants something else to pay close attention to besides just job creation in the private sector.
A miss on the unemployment rate or NFP print could stoke significant US dollar volatility and thus impact gold trajectory.
The CPI report on (originally scheduled for Wednesday) will be another major data point to watch. Private sector reports show that inflation is slowing down quickly, there is still a concern that the official CPI might stay high. This is mainly because of the delayed effects of trade tariffs.
US companies are currently paying the taxes on imported goods, and while some of these businesses are trying to save money elsewhere to cover the extra costs, there is a strong chance they will eventually pass those costs on to shoppers.
On the positive side, cheaper energy prices and falling rent costs are helping to balance things out and keep overall inflation from rising too much.
Keep a close watch on geopolitical developments as well with the US-Iran-Israel situation a fluid and evolving risk to market sentiment. This could have major implications for haven demand this week as well.
For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)
Technical Outlook - Gold (XAU/USD)
Looking at the four-hour chart below, the technical picture is starting to lean toward further gains for Gold prices.
The rally since the February 2 low at 4402 has printed a higher high and higher low with a fresh higher high looking more likely.
The period-14 RSI broke above the 50 level which hints at bullish momentum.
A break and four-hour candle close above the $5100/oz may give bulls more cause for optimism as well and may lead to a speedy rally toward the $5200/oz mark.
A four-hour candle close below the $4760/oz would lead to a break in structure and the need to re-evaluate price action.
Gold (XAU/USD) Four-Hour Chart, February 9, 2026
Source: TradingView (click to enlarge)
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