XAUUSD Gold Price Analysis and Current Market Trends - January 7, 2026

Gold Market Situation During Asian Market Opening

This morning, the precious metals market experienced significant volatility, with the XAUUSD gold price surging over 1% during the Asian market open, breaking through the $4,500 resistance level before retracing to $4,460.

The primary driver of buying pressure is the geopolitical uncertainty, prompting investors to seek safe-haven assets. The market is witnessing a new wave of conflicts that could escalate, while equity markets continue to hit new highs regardless. This indicates that capital is genuinely flowing into risk-averse assets.

The Changing Role of Gold in Investment Strategies

Gold is no longer just a traditional hedge against inflation. According to senior analysts, gold has become a fundamental asset for geopolitical risk mitigation. Precious metals traders demonstrate a deeper market signal reading ability than other traders.

The US’s aggressive policy expansions, which may prompt responses from rival powers, have led the gold market to start pricing in these macro risks already.

The Expansion of Silver and Copper Markets

Not only gold, but (Silver) and (Copper) are also showing exciting movements.

Silver: Prices surged over 4%, trading above $80 per ounce.

Copper: Futures broke through $6 per pound for the first time.

These price movements are driven by industrial needs. In the transition era toward electric and clean energy systems, these metals are essential for infrastructure development, data centers, and electrical networks.

The gold-to-silver ratio (Gold/Silver Ratio) has fallen to 55, the lowest since April 2013, indicating that silver is outperforming gold significantly.

Long-term Outlook and Price Targets

Analysts believe that a $5,000 gold target by 2026 is feasible, especially if central banks maintain current interest rates. However, the labor market remains a key variable.

Fundamental factors supporting the bullish outlook include deep public debt issues, currency devaluation, and ongoing global conflicts with no clear resolution. Amid these factors, a $5,000 gold price is not a fantasy but a market trajectory.

Short-term Risks from Portfolio Rebalancing

While the main trend supports higher prices, short-term risks exist from large fund portfolio adjustments after gold delivered 67% returns and silver nearly 150% in 2025.

Index funds may need to sell profitable assets to maintain portfolio ratios. It is estimated that gold sales could reach $5.5 billion, and silver sales around $5 billion during this period.

However, this selling is not a sign of deteriorating fundamentals but a financial mechanism that may temporarily suppress prices and create buying opportunities.

Gold Price Chart Analysis on 4-Hour Timeframe

The current gold price is at $4,462, confirming the strength of the bullish trend.

Analysis of the 4-hour chart shows the price still moving within an upward parallel channel, approaching the upper boundary, which acts as a dynamic resistance.

Theoretical target: Fibonacci Extension 141.4% around $4,480 - $4,481, serving as a critical “test level.” A breakout above this could signal a slowdown in buying momentum or short-term profit-taking.

Indicators: RSI remains in the 60 zone, indicating room for further upside, but Stochastic RSI shows a Bearish Crossover in the overbought zone above 80, suggesting upward momentum is starting to tighten.

Risks: The risk of a correction is high; current price levels present a Risk-to-Reward ratio that may no longer be favorable.

Recommended Trading Strategy

Optimal entry point: Wait for the price to retrace and test the support zone that has shifted from the previous resistance, around $4,433 - $4,441. If the chart forms a base and stays above this zone without breaking below the short-term EMA, it confirms a strong continuation toward the target of $4,551 (Fibonacci 161.8%).

Caution: If the price falls below the $4,433 zone, the next support levels at the mid-term EMA and horizontal support around $4,342 become critical observation points.

Summary: “Wait for a pullback and then buy” remains the safest strategy when the chart approaches overbought zones.

Key Support and Resistance Levels

Supports:

• $4,433 - $4,441
• $4,342

Resistances:

• $4,480 - $4,481
• $4,520
• $4,551