Valeria Bednarik

The Federal Open Market Committee (FOMC) released the Minutes of the December meeting, and the document showed that most participants are willing to deliver additional rate cuts if inflation declines over time.

What you need to know on Wednesday, January 7:

Spot Gold consolidates at around $4,660 on Monday, little changed on a daily basis, yet lower compared to Friday’s close. Financial markets are all about sentiment at the beginning of the week, with the mood swinging at the rhythm of Iran war headlines.

Central banks are expected to increase their Gold purchases in 2026, analysts at Goldman Sachs say, supporting a much-needed boost to the precious metal toward the end of the year.

Axios journalist Barak Ravid reported on Thursday that the US and Iran have reached an agreement on a 60-day memorandum of understanding to extend the ceasefire and launch negotiations on Iran's nuclear program, but President Trump has yet to give it his final approval, according to two US official

The final reading of the United States (US) S&P Global Services PMI came in at 50.7 in May, compared to the previous 50.9 and missing estimates of 50.9. Meanwhile, the Composite PMI was confirmed at 51.5 in the same month, slightly below the anticipated 51.7.

Gold has become the top reserve asset in global central banks’ vaults, surpassing US Treasuries, suggesting that the precious metal is becoming the main choice for monetary authorities seeking protection against geopolitical uncertainty.

Poland’s central bank was the top Gold buyer in April among its peers, consolidating its position as one of the world’s most active sovereigns that accumulate the precious metal.

China’s central bank, one of the major Gold purchasers worldwide, continued to add the precious metal to its vaults in April, in a sign that demand from sovereigns remains high.

The US Dollar (USD) is under strong selling pressure on Wednesday, yet action around XAU/USD is muted.