Gold prices have maintained their high pace since last week amid pressure on the USD currency market and high bullion demand from global central banks.
At 9.10 am, gold prices were at $5,010, up about 0.92% since it opened in early trading on Monday in the Asian session.
Concerns over the independence of the United States Federal Reserve (Fed) continued to pressure the US dollar (USD) after US Treasury Secretary Scott Bessent refused to rule out the possibility of a criminal investigation into Kevin Warsh, President Donald Trump's nominee for Fed chairman, if he refuses to cut interest rates.
The development sparked concerns of political interference in monetary policy, thus dragging the USD lower and providing some support to the prices of dollar-denominated commodities.
Meanwhile, the People's Bank of China (PBOC) continued its gold purchases for the 15th consecutive month in January. China's central bank gold holdings rose to 74.19 million troy ounces by the end of January, compared with 74.15 million ounces in the previous month.
Rising demand from China, the world's largest gold consumer, is seen continuing to support global gold prices amid economic and geopolitical uncertainty.
In the Middle East, the development of nuclear talks between Iran and the United States is also on the market's radar. Iranian President Masoud Pezeshkian described the talks as a positive development, but stressed the need to reject any form of pressure or intimidation.
At the same time, Iranian Foreign Minister Abbas Araghchi stressed that any dialogue can only continue if both sides practice restraint and avoid threats.
US President Donald Trump announced that another meeting is expected to be held in the near future, with the market continuing to monitor the progress of these talks.
Any sign of positive progress has the potential to reduce demand for safe assets, thus putting pressure on the price of precious metals in the short term.
