Here’s what you need to know on Friday, January 2:
Financial markets are still in a holiday mood as the first trading day of the new year begins. The economic calendar will not offer any high-level data releases on Friday and trading volumes may remain weak heading into the weekend.
US dollar price this week
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed this week. The US dollar was the strongest against the New Zealand dollar.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | 0.24% | 0.18% | 0.27% | 0.37% | 0.10% | 1.23% | 0.56% | |
| euro | -0.24% | -0.06% | 0.04% | 0.14% | -0.14% | 0.99% | 0.33% | |
| GBP | -0.18% | 0.06% | 0.25% | 0.20% | -0.08% | 1.05% | 0.39% | |
| JPY | -0.27% | -0.04% | -0.25% | 0.12% | -0.16% | 0.95% | 0.31% | |
| Canadian | -0.37% | -0.14% | -0.20% | -0.12% | -0.23% | 0.86% | 0.19% | |
| Australian dollar | -0.10% | 0.14% | 0.08% | 0.16% | 0.23% | 1.13% | 0.47% | |
| New Zealand dollar | -1.23% | -0.99% | -1.05% | -0.95% | -0.86% | -1.13% | -0.66% | |
| Swiss franc | -0.56% | -0.33% | -0.39% | -0.31% | -0.19% | -0.47% | 0.66% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select USD 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).
After a modest recovery until the end of 2025, US Dollar (USD) The index maintains its position in the European morning on Friday and fluctuates in a narrow range above 98.00. Meanwhile, US stock index futures rose between 0.3% and 0.7% after falling earlier in the week. On Monday, the Institute for Supply Management (ISM) will publish December manufacturing Purchasing Managers’ Index (PMI) data.
gold It recorded significant losses before the New Year holiday but was able to regain its momentum on Friday. At press time, the XAU/USD pair was trading near $4,380, up more than 1% on a daily basis.
Likewise, the XAG/USD pair is witnessing a decisive recovery towards $74 and is gaining more than 3% on the day. still, silver It’s down nearly 7% for the week and is still on track to snap a five-week winning streak.
EUR/USD The pair stabilizes around 1.1750 after falling in the first half of the week. Sentix investor confidence data for January will be shown in the European economic calendar later in the session.
After falling to its lowest level in over a week and testing 1.3400 on the last day of 2025, GBP/USD It reversed its trend and erased a large portion of its weekly losses. The pair remains relatively calm early Friday and is trading above the 1.3450 level.
After a decline on Monday. USD/JPY It closed in positive territory for two consecutive days. The pair continues to rise and is trading near 157.00 early Friday.
Frequently asked questions about gold
Gold has played a major role in human history as it has been widely used as a store of value and a medium of exchange. Currently, apart from its luster and use in jewellery, the precious metal is widely viewed as a safe haven asset, meaning it is a good investment during turbulent times. Gold is also widely viewed as a hedge against inflation and currency depreciation because it is not dependent on any specific issuer or government.
Central banks are the largest holders of gold. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and purchase gold to improve the perceived strength of the economy and the currency. High gold reserves can be a source of confidence for a country’s solvency. Central banks added 1,136 tons of gold worth about $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest annual purchase since records began. Central banks in emerging economies such as China, India and Turkey are rapidly increasing their gold reserves.
Gold has an inverse relationship with the US dollar and US Treasuries, which are major reserve assets and safe havens. When the value of the dollar declines, 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 rise in the stock market tends to weaken the price of gold, while a sell-off in riskier markets tends to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession could cause the price of gold to rise rapidly due to its safe-haven status. As a lower-yielding asset, gold tends to rise as interest rates fall, while a higher cost of money usually negatively impacts the yellow metal. However, most of the moves depend on how the US Dollar (USD) behaves as the asset is priced in Dollars (XAU/USD). A stronger dollar tends to keep the price of gold in check, while a weaker dollar is likely to push gold prices higher.
