WGC Weekly Monitor: Gold Hits Record High on Global Uncertainty
Gold | 2026-01-20 04:53:29
However, analysts caution that near-term challenges may emerge.
By Paul Ploumis
SEATTLE (Scrap Monster): Safe-haven demand strengthened early Monday as global markets reacted to renewed geopolitical and trade tensions, driving investors toward assets such as gold and the Japanese yen, said the Weekly Markets Monitor Report published by the World Gold Council (WGC).
Market sentiment shifted after former US President Donald Trump warned of potential tariff actions against several European Union nations amid disputes linked to his Greenland ambitions. Early sector moves point to a rotation away from US equities.
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Gold prices surged to fresh record territory, supported by escalating geopolitical uncertainty and heightened trade risks. The LBMA Gold Price PM ended last week at $4,611 per ounce, marking a solid weekly gain and extending year-to-date advances. Investor appetite for bullion remained strong, with increased inflows into gold-backed exchange-traded funds.
However, analysts caution that near-term challenges may emerge. Momentum indicators have yet to fully validate the latest price highs, while a firmer US dollar and rising Treasury yields could cap further upside. Meanwhile, tensions in the Middle East and the ongoing Russia-Ukraine conflict continue to fuel safe-haven interest globally.
POLL
What was the primary driver behind the latest surge in gold prices?
Frequently Asked Questions
- What triggered the renewed safe-haven demand in global markets?
Escalating geopolitical and trade tensions, including tariff threats involving the European Union, drove investors toward defensive assets.
- How did gold prices perform during the period?
Gold surged to record levels, ending the week at $4,611 per ounce, supported by strong investor demand and ETF inflows.
- What risks could limit further gains in gold prices?
Analysts cite unconfirmed momentum signals, a firmer US dollar, and rising US Treasury yields as potential headwinds.
