On January 12, 2026, the global precious metals market witnessed a historic moment, propelled by a confluence of multiple factors. During the Asian trading session, spot gold prices surged strongly, briefly touching $4,600.89 per ounce and setting a new all-time high record. Concurrently, spot silver prices also experienced significant gains.
This notable upward movement in gold prices is closely linked to the escalating geopolitical risks globally. Reports indicate that U.S. President Trump is considering various options to intervene in the Iran situation. Additionally, events such as U.S. military involvement in Venezuela and the ongoing Russia-Ukraine conflict have persistently dampened global risk sentiment, prompting some capital to flow into traditional safe-haven assets like gold.
On another front, market expectations regarding the future direction of the U.S. Federal Reserve's monetary policy have also provided support for gold prices. Federal Reserve Chairman Jerome Powell recently stated that the threat of criminal charges against him stems from the Fed setting interest rates based on assessments deemed most beneficial to the public, rather than following presidential preferences. This statement has drawn market attention to the Fed's independence. Meanwhile, the U.S. non-farm payroll data for December, released last Friday, showed an addition of 50,000 jobs, falling below general market expectations. The slowdown in job growth has, to some extent, reinforced market expectations of a potential shift towards a more accommodative monetary policy in the future. The market's focus will now shift to the upcoming U.S. CPI inflation data.
From a long-term demand perspective, gold purchasing by global central banks constitutes a stable supporting factor. According to the World Gold Council, global central banks were net purchasers of 45 tonnes of gold in November 2025. By the end of November 2025, the cumulative net purchases by global central banks for the year had reached 297 tonnes. Data from the People's Bank of China also shows that as of the end of December 2025, China's gold reserves stood at 74.15 million ounces, an increase of 30,000 ounces month-on-month, marking the 14th consecutive month of increases.
The strong performance of the gold market has simultaneously transmitted to related financial markets and retail channels. Gold-related stocks in the Hong Kong market generally showed strength, while multiple stocks in the A-share precious metals sector also recorded gains. Consequently, the prices of domestic brand gold jewelry have risen, with some brands seeing their pure gold jewelry prices increase by several tens of yuan per gram in a single day.
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