Gold Hits Record High: Geopolitical Tensions and Market Instability Fuel Growth

January 20, 2026

On Tuesday, gold prices surged to around 4670 USD per ounce, reaching a new record. This price movement comes amid rising demand for safe-haven assets, driven by the escalating trade disputes between the US and the EU.

Recent reports indicate that Denmark is bolstering its military presence in Greenland, following US President Donald Trump’s threats to use force to establish control over the island. Additionally, Trump has threatened to impose a 10% import tariff on goods from eight European countries starting 1 February, with the possibility of increasing the rate to 25% by June if the US is not permitted to purchase Greenland. This has raised concerns within the EU, prompting an emergency summit this Thursday to discuss possible countermeasures.

The delayed release of the US Personal Consumption Expenditures (PCE) index this week is also drawing attention, as it could provide further clarity on inflation trends and the future direction of US monetary policy.

Gold’s strong performance this year is further fuelled by inflows into defensive assets amid geopolitical tensions surrounding Venezuela and Iran, as well as ongoing concerns about the US Federal Reserve’s autonomy.

Technical Analysis:

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On the H4 XAUUSD chart, gold is pushing through its fifth wave of growth, with the 4,800 level as the next target. After reaching this level, we anticipate a potential pullback towards 4,660. The MACD indicator supports this upward momentum, as its signal line remains at highs, pointing upward.

On the H1 chart, the price has broken through the 4,717 level, forming a consolidation range around it. The trend is likely to continue towards 4,800, with the Stochastic oscillator confirming this bullish outlook, as the signal line remains below 20 and under upward pressure.

Conclusion:

Gold continues to hit new highs, driven by geopolitical tensions and market instability. With ongoing risks in trade relations and concerns about US monetary policy, the demand for defensive assets such as gold remains strong. Technically, gold’s momentum is expected to continue upward, potentially reaching 4,800 before any correction.

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.