FX Today: Gold surges past $4,400 as Venezuela crisis shakes financial markets
Here is what you need to know on Tuesday, January 6:
Over the weekend, the United States (US) military entered Venezuela, capturing and bringing Venezuelan President Nicolás Maduro and his wife, Cilia Flores, to New York. According to the latest developments, Maduro is being held at the Metropolitan Detention Center in Brooklyn and will face narco-terrorism and possession of destructive weapons charges. Moreover, US President Donald Trump said that Washington might make a fresh military intervention if Venezuela’s interim president, Delcy Rodríguez, did not accommodate his demands.
The US Dollar Index (DXY) is trading near the 98.30 price region, with market participants closely watching the impact of US intervention in Venezuela on oil prices to assess potential broader financial markets implications and spillovers into the foreign exchange market. The price of WTI oil dropped modestly at the beginning of the day and is now moving back toward around $58 per barrel.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.03% | -0.56% | -0.38% | 0.18% | -0.26% | -0.34% | 0.00% | |
| EUR | 0.03% | -0.53% | -0.31% | 0.21% | -0.23% | -0.30% | 0.04% | |
| GBP | 0.56% | 0.53% | 0.19% | 0.74% | 0.30% | 0.23% | 0.57% | |
| JPY | 0.38% | 0.31% | -0.19% | 0.56% | 0.11% | 0.04% | 0.38% | |
| CAD | -0.18% | -0.21% | -0.74% | -0.56% | -0.44% | -0.51% | -0.18% | |
| AUD | 0.26% | 0.23% | -0.30% | -0.11% | 0.44% | -0.08% | 0.26% | |
| NZD | 0.34% | 0.30% | -0.23% | -0.04% | 0.51% | 0.08% | 0.34% | |
| CHF | -0.00% | -0.04% | -0.57% | -0.38% | 0.18% | -0.26% | -0.34% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
The US published the ISM Manufacturing Purchasing Managers Index (PMI), which registered 47.9 in December, a 0.3% decrease from 48.2 in November and the lowest reading of 2025. The data came in weaker than the expected 48.3, sending the US Dollar (USD) lower in the American session.
Gold started the week on a bullish note and climbed above $4,440 as heightened geopolitical tensions helped XAU/USD hold its ground amid US land strikes on Venezuela, leading to the capture of its President, Nicolás Maduro.
EUR/USD trimmed almost all its intraday losses but remains under moderate selling pressure and trades below 1.1720 on Monday. The pair stays on the back foot as the USD benefits from the cautious market mood.
GBP/USD trades at a five-month high, not far from the 1.3550 mark, in the American session on Monday, as the USD accelerated its slump following the release of the December ISM Manufacturing PMI.
USD/JPY is trading near the 156.30 price zone. The Japanese Yen (JPY) found additional support after Bank of Japan (BoJ) Governor Kazuo Ueda reiterated that the central bank will continue raising interest rates if economic and price projections materialize.
AUD/USD is on a green note trading near the 0.6710 level on Monday, extending its last week's gains.
Looking ahead, the preliminary estimate of the German December Harmonized Index of Consumer Prices (HICP) is scheduled for Tuesday, with expectations of inflation rising .2% Year-over-Year (YoY) and 0.4% Month-over-Month (MoM). On Wednesday, the Australian Consumer Price Index (CPI) report will be released alongside the Eurozone HICP, the US ADP Employment Change, and the Jolts Job Openings report.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
Recommended Articles
