Gold Consolidates Near Record Amid Geopolitical Risks
Gold (XAU/USD) hit a new record on Wednesday (January 21st), as worsening risk sentiment in global markets prompted investors to flee to safe-haven assets. At the time of writing, gold was consolidating around $4,855, after briefly touching a new all-time high near $4,888 in the European session.
Gold's bullish trend remains strong. Prices have risen more than 6% this week after US President Donald Trump re-escalated trade tensions with the European Union over his ambitions to control Greenland.
This latest statement has fueled fears of a broader trade war. Speculation has also arisen that Europe could "weaponize" its large holdings of US stocks and Treasury bonds, reinforcing the "Sell America" narrative in the market.
The risk-off sentiment intensified following turmoil in the Japanese bond market. The sharp sell-off pushed long-dated bond yields to their highest levels in decades, and the resulting volatility has shaken global debt markets—including US Treasuries.
Continued volatility in the bond market has heightened investor concerns about the fiscal health of major economies. This situation strengthens demand for gold as a hedge against macroeconomic uncertainty and financial stability risks.
Source: Newsmaker.id
