Amid Risk-Off! Gold Jumps Above $4,700
The price of gold (XAU/USD) hit another record on Tuesday (January 20th), breaking through the psychological level of $4,700 per ounce.
At the time of writing, gold was trading around $4,742, just shy of its new record of $4,748. This increase has fueled stronger safe-haven demand amid escalating geopolitical tensions.
Market sentiment remains fragile as the US-EU trade dispute heats up again. Last weekend, US President Donald Trump threatened new tariffs on eight European countries related to the Greenland rescue.
European leaders immediately condemned the move and signaled they would prepare retaliatory measures if the tariffs were actually implemented.
This situation reignited fears of a transatlantic trade war. Consequently, the market trended towards a "risk-off" trend: global stocks were depressed, while defensive assets like gold were increasingly sought after. Trump's increasingly protectionist stance also eroded confidence in US assets, depressing the dollar, and prompting investors to shift funds to alternative G10 currencies and classic safe havens.
In addition to trade factors, the Russia-Ukraine war and ongoing tensions in the Middle East have contributed to maintaining high geopolitical risks. At the same time, continued strong institutional and investor demand, coupled with expectations of a more dovish Fed, have supported gold's continued uptrend.
Source: Newsmaker.id
