Precious Metals Rally as Gold Reclaims $5,070 Mark Amid Declining US Dollar and Treasury Yields

Gold reclaims $5,070 and silver rebounds 7% as a sliding US Dollar and China's Treasury sell-off fuel safe-haven demand ahead of key NFP and CPI data.

By: AXL Media

Published: Mar 31, 2026, 10:28 AM EDT

Source: The information in this article was sourced from RT Staff Reporters

Monetary Factors Driving the Bullion Rebound

Gold prices successfully reclaimed the $5,070 level on Monday as the US Dollar Index collapsed below the 97 mark. This rally was largely catalyzed by a shift in global central bank behavior, specifically Chinese regulators advising domestic banks to reduce their US Treasury holdings to the lowest levels since 2008. The resulting decline in the greenback has made non-yielding assets like gold more attractive to international investors. Furthermore, markets have begun pricing in roughly 58 basis points of Federal Reserve rate cuts for 2026, creating a favorable environment for precious metals as real yields continue to soften.

Geopolitical Influence and Safe Haven Demand

Recent international developments have added a significant geopolitical premium to the metals market. In Japan, a landslide election victory for PM Takaichi’s coalition has paved the way for expansionary fiscal policies, reinforcing a global narrative favoring "hard money" assets. Simultaneously, while high-level talks in Oman have temporarily lowered the risk of immediate escalation between the US and Iran, broader tail risks remain present. These combined factors have sustained a robust demand for bullion as a protective hedge against global political instability and currency devaluation.

Technical Analysis of the Gold Recovery

From a technical perspective, gold is showing signs of a constructive recovery after testing lows near $4,580 in late January. The daily Ichimoku cloud remains expansive, with key support levels converging near the $5,000 psychological floor. While the Relative Strength Index has climbed to 67.7, it remains below the overbought threshold, suggesting there is still room for upward movement. Analysts at JP Morgan and Société Générale maintain bullish year-end targets ranging from $6,000 to $6,300, viewing the recent volatility as a necessary positioning shakeout rather than a fundamental change in the long-term bull market.