{"id":127048,"date":"2026-01-13T15:16:23","date_gmt":"2026-01-13T13:16:23","guid":{"rendered":"https:\/\/ironfx-com.wp-dev.int.theitops.net\/?p=127048"},"modified":"2026-01-15T13:53:59","modified_gmt":"2026-01-15T11:53:59","slug":"golds-weekly-update-fed-independence-under-fire-as-geopolitical-tensions-flare-up","status":"publish","type":"post","link":"https:\/\/www.smartindonesiafx.id\/ar\/golds-weekly-update-fed-independence-under-fire-as-geopolitical-tensions-flare-up\/","title":{"rendered":"Gold\u2019s Weekly Update: Fed independence under fire as Geopolitical tensions flare up"},"content":{"rendered":"

Gold\u2019s price continued to rise since our last report<\/a> forming new all-time highs close to $4600 per troy ounce. We are also adding a technical analysis of gold\u2019s daily chart at the end of the report for a rounder view.<\/p>\n\n\n\n

US Inflation data out today<\/strong><\/h2>\n\n\n\n

The US CPI rates for the month of December<\/strong> are set to be released later on today, with the inflation print set to garner significant attention from market participants. <\/p>\n\n\n\n

The Core CPI rates for December are anticipated by economists to accelerate from 2.6% to 2.7% which could provide support for the dollar, as the Fed\u2019s apparent path to remain on hold may be bolstered by the inflation data.<\/p>\n\n\n\n

On the other hand, should the data showcase easing inflationary pressures in the US economy could lead to pressure being mounted on Fed policymakers to resume their rate-cutting path, which could weigh on the dollar whilst aiding gold\u2019s price given their inverse relationship with one another.<\/p>\n\n\n\n

Geopolitical tensions in play<\/strong><\/h2>\n\n\n\n

On a geopolitical level,<\/strong> the markets have been busy digesting two new events. Firstly, the US\u2019s territorial ambitions on Greenland<\/strong> have resulted in friction between the NATO alliance<\/strong>, with President Trump<\/strong> stating that \u201cBut we do need Greenland, absolutely. We need it for defence\u201d and that the US would take it \u201cone way or the other<\/strong>\u201d, which led to Greenland\u2019s response that it \u201ccannot under any circumstances accept\u201d. <\/p>\n\n\n\n

Greenland given that it is part of Denmark<\/strong> is also part of the alliance<\/strong> and thus the threat of military action by a fellow member could lead to irreparable damage to the alliance\u2019s standing if not also its dissolution. Furthermore, President Trump\u2019s statements<\/strong> in regards to Iran that \u201cThe military is looking at it, and we\u2019re looking at some very strong options. <\/p>\n\n\n\n

We\u2019ll make a determination\u201d has led to widespread speculation that the US could be preparing for military action against Iran or via one of it\u2019s allies in the region. Hence such a possibility could flare up tensions in the region and could result to a full blown war, as was communicated by the speaker of Iran\u2019s Parliament<\/strong> who sated that \u201cCome and see what will happen to American ships and military bases in the region<\/strong>\u201d. <\/p>\n\n\n\n

Overall the two geopolitical issues may have resulted into safe haven inflow\u2019s into gold given its status and may have thus provided support for the commodity\u2019s price. In our view, given the current US Government\u2019s approach<\/strong> to diplomacy and the President\u2019s \u2018non-diplomatic\u2019 comments, we wouldn\u2019t be surprised to see the aforementioned rhetoric continuing which could further aid gold\u2019s price.<\/p>\n\n\n\n

Fed independence under threat<\/strong> <\/h2>\n\n\n\n

The DOJ<\/strong> last Friday<\/strong> served the Federal Reserve with grand jury subpoenas<\/strong>, threatening a criminal indictment related to Fed Chair Powell\u2019s testimony before the Senate Banking Committee last June. <\/p>\n\n\n\n

The decision by the DOJ has been described as political in nature, with Fed Chair Powell<\/strong> releasing the following statement \u201cThis is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions\u2014or whether instead monetary policy will be directed by political pressure or intimidation\u201d. <\/p>\n\n\n\n

Moreover, head central bankers around the globe including ECB Lagarde<\/strong> \u0648 BoE Bailey<\/strong> have released a statement of support for Fed Chair Powell. In turn this apparent attempt to force the Fed on a particular monetary policy may greatly erode market confidence in the dollar and could thus aid gold\u2019s price.<\/p>\n\n\n\n

Gold Technical Analysis<\/strong><\/h2>\n\n\n\n

XAU\/USD Daily Chart<\/strong><\/strong><\/strong><\/h3>\n\n\n\n
\"XAU\/USD<\/figure>\n\n\n\n