Gold retreats slightly from $4,900; bullish potential seems intact
Gold (XAU/USD) has slightly retreated from its intraday surge and is hovering around the $4,900 area, after briefly hitting a new record high on Wednesday (January 21st).
This slight weakness stems primarily from the US dollar, which is slowly strengthening and attempting to continue its rebound from a two-week low. A strengthening USD is a classic "counterforce" for gold, as it makes it more expensive for holders of other currencies.
However, the underlying tone remains pro-gold. Supportive fundamentals make the market view this correction not as a reversal signal, but rather as a healthy pullback that tends to be bought.
The trigger remains the same: volatility rose again after US President Donald Trump threatened to impose new tariffs on eight European countries that reject his plan to acquire Greenland. Amid ongoing geopolitical uncertainty, investor sentiment has become fragile again—and conditions like this typically fuel safe-haven assets like gold.
Furthermore, the return of the "Sell America" narrative has also hampered the dollar's recovery. The market still expects further easing from the Federal Reserve, which tends to benefit gold because it is non-yielding.
In conclusion: gold has retreated slightly from the $4,900 area, but as long as geopolitical tensions and expectations of Fed easing remain dominant, gold's bullish potential is considered intact.
Source: Newsmaker.id
