Market Highlight 27.01.2026

Global gold prices rose and held above USD 5.000 per ounce for a second straight session, driven by a weaker USD alongside additional support from heightened geopolitical risk and a pullback of capital from Government bonds and money markets. Gold jumped by more than 0,8% early Tuesday, marking a seventh consecutive daily gain, while the USD Index fell to its lowest level in nearly four years. The recent rally in gold - up nearly 17% since the start of 2026 - reflects a reallocation of flows away from money markets and sovereign bonds (as seen recently in Japan). Markets are now awaiting President D. Trump’s decision on the next Chair of the Federal Reserve (FED), after he said he has completed interviews with candidates and reiterated that he has already made up his mind. A more dovish Chair nominee would reinforce expectations for deeper rate cuts this year - typically supportive for precious metals such as gold -  following the FED’s three consecutive rate reductions  late last year.

According to Bloomberg’s latest monthly survey, economists now expect the Federal Reserve to hold off on further rate cuts until June 2026. After lowering its policy rate three times in a row at the end of 2025, Federal Reserve officials are expected to favour keeping rates unchanged at this week’s meeting early Thursday morning. Meanwhile, the U.S Government shutdown late last year may have had a more limited impact on growth than previously feared, with Q4 GDP projected to expand by +2,1%.

The USD/VND interbank exchange rate fell by nearly VND 50 to an intraday low of 26.175 yesterday, before rebounding late in the afternoon to 26.190. Downward pressure is likely to persist, supported by elevated year-end demand for VND and the USD’s recent weakness in global markets, potentially guiding the exchange rate lower toward the 26.000 - 26.100 region.

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