On January 30, the World Gold Council's 2025 "Global Gold Demand Trends Report" revealed that total global gold demand reached 5,002 tonnes, setting a new historical record. Persistent geopolitical tensions and global economic uncertainties jointly propelled a surge in gold investment demand, driving the total value of gold demand to $555 billion. The "Global Gold Demand Trends Report" indicated that global gold demand in 2025 hit 5,002 tonnes, achieving an all-time high. Notably, fourth-quarter gold demand performance set another record, concluding a stellar year for the global gold market. Ongoing geopolitical and economic uncertainties drove a significant increase in gold investment demand, resulting in an annual total gold demand value of $555 billion. Propelled by gold prices reaching a record high 53 times throughout the year, the annual average gold price soared to $3,431 per ounce, a 44% year-on-year increase. It is worth highlighting that this robust demand was primarily driven by three core forces.
Furthermore, data released by Japan's Ministry of Internal Affairs and Communications on Friday showed that Tokyo's core CPI (excluding fresh food) rose 2.0% year-on-year in January, below the expected 2.2% and the previous value of 2.3%. Tokyo CPI (excluding fresh food and energy) increased 2.4% year-on-year, below the expected 2.6% and the previous 2.6%. Tokyo's headline CPI was 1.5%, lower than the expected 1.7% and the prior 2.0%. The slowdown in Tokyo's CPI growth, a leading indicator, suggests that nationwide inflationary pressures in Japan are easing. Falling energy prices were the primary factor dragging down inflation. Gasoline prices fell 14.8% year-on-year, a significantly larger drop than the previous month's 6.4% decline, while overall energy prices dropped 4.2%, subtracting 0.22 percentage points from the overall inflation rate. Food price increases continued to narrow. The increase in food prices excluding fresh food slowed from 6.2% to 5.6%, reducing its contribution to inflation by 0.13 percentage points.
Key data to watch today includes France's preliminary Q4 GDP annual rate, Germany's January seasonally adjusted unemployment rate, Germany's preliminary Q4 quarter-on-quarter GDP growth rate, the Eurozone's preliminary Q4 quarter-on-quarter GDP growth rate, the Eurozone's December unemployment rate, Germany's preliminary January CPI annual rate, the US December PPI annual rate, Canada's November month-on-month GDP seasonally adjusted, and the US January Chicago PMI.
Gold / USD Gold retreated from highs yesterday, closing slightly lower on the daily chart, with the current exchange rate hovering around 5230. Besides profit-taking exerting some downward pressure on gold, a slight easing of investor concerns about a potential US government shutdown also weighed on the metal. However, a softer US Dollar index and lingering risk-averse sentiment in the market limited the downside for gold. Attention today is on the resistance near 5300, with support below around 5150.
USD / JPY USD/JPY consolidated with a slight downward bias yesterday, closing marginally lower on the daily chart, with the current exchange rate trading around 153.90. In addition to the US Dollar index weakening under pressure from factors like trade uncertainty and government shutdown concerns, which weighed on the pair, persistent expectations of intervention in the currency market by the Bank of Japan also continued to pressure the exchange rate. Furthermore, expectations for a Bank of Japan interest rate hike also exerted some downward pressure. Focus today is on resistance near 155.00, with support below around 153.00.
USD / CAD USD/CAD trended lower yesterday, refreshing a 15-month low, with the current exchange rate trading around 1.3510. Besides the US Dollar index softening under pressure from multiple negative factors including weak economic data, which weighed on the pair, a significant climb in crude oil prices supported by escalating tensions in the Middle East was also a key factor pressuring the exchange rate lower. Additionally, the Bank of Canada's recent decision to hold rates steady, as expected, continues to exert downward pressure. Attention today is on resistance near 1.3600, with support below around 1.3400.