Gold Price News: Gold Holds Steady Below $2,950

Gold prices were range bound on Friday, holding just below their recent all-time highs.

Prices moved in a range of $2,917 to $2,951 an ounce on Friday, compared with Thursday’s all-time intra-day high of $2,956 an ounce.

The relative stability followed strong gains earlier in the week as gold prices continued to benefit from a flight to safety amid economic uncertainty and heightened geopolitical risk. These factors have been driven by worries over the impact of US trade tariffs and concerns over the shape of any deal to end the war between Russia and Ukraine.

China’s central bank continues to buy gold

On the demand side, China’s official gold holdings rose for a third straight month in January, after the People’s Bank of China bought five tonnes, according to the World Gold Council: China’s gold market update: Central bank purchases continue in January. The bank’s latest purchases lifted China’s official holdings to 2,285 tonnes, or 5.9% of total foreign reserves. This followed total gold purchases of 44 tonnes by the PBoC in 2024 which came despite a six-month pause in the middle of the year.

Technical analysis

On the technical charts, any further gains for gold could see the precious metal test ascending oblique minor resistance at $2,965 an ounce, while any downside moves would have to contend with rising oblique major support at $2,833 an ounce. Prices remain well above their 20-day moving average, which stood at $2,864 an ounce as of Friday evening. Moreover, gold’s 10-day Relative Strength Index remains relatively high at 69.2, indicating a possibility of a short-term easing in prices.

Upcoming data

Looking ahead, Monday will bring Euro Area year-on-year inflation data for January. The figures have shown three previous consecutive monthly rises, and January’s level is expected to have increased to 2.5%, somewhat above the ECB’s target of 2%. Rising inflation tends to hamper the ability of central banks to cut interest rates further and could therefore act as a dampener on the price of precious metals as non-interest-bearing assets. Further ahead, Tuesday will bring German GDP growth rates for Q4, 2024.