Spot gold prices fell slightly after approaching the 5,000 USD/ounce mark at the beginning of Friday's session, as investors took profits after the precious metal set a new record thanks to uncertain geopolitical prospects. Silver and platinum also simultaneously touched historic highs.
Spot gold prices fell 0.1%, to 4,930.44 USD/ounce in this afternoon's trading session, after jumping to a new peak of 4,967.03 USD earlier in the day. Since the beginning of the year, gold prices have increased by 14%.
US gold futures for February delivery rose 0.4%, to 4,932.20 USD/ounce.
“Although geopolitical risks and trade tensions have somewhat cooled down, the level of uncertainty still covers the market” - Mr. Lukman Otunuga, senior analyst at FXTM, said. “In the short term, technical factors and profit-taking activities are limiting the upward momentum”.
US President Donald Trump said on Thursday that he had reached an agreement with NATO, ensuring US full and permanent access to Greenland. The EU welcomed Mr. Trump's temporary suspension of tax threats to seize control of the island, but said it is still ready to respond if the future behavior of the US President makes it necessary.
Global buying power and the trend of dedollarization fuel gold prices
Strong buying power from central banks and the global "non-dollarization" trend continue to support gold prices, as investors seek shelter from policy fluctuations and market risks.
Meanwhile, the US Federal Reserve (Fed) is forecast to keep interest rates unchanged at the meeting on January 27-28. However, the market still expects the Fed to have two more interest rate cuts in the second half of 2026. The low-interest and uncertain economic environment often supports non-profit assets such as gold.
In India, the domestic gold price difference compared to the world has increased to the highest level in more than 10 years due to investors buying heavily in the face of the possibility of increased taxes in the budget estimate; meanwhile, the price difference in China has decreased.
Spot silver prices rose 2.4% to $98.47/ounce after setting a record of $99.34, raising the increase from the beginning of the year to 37%. “Traditionally, silver is not a safe haven asset; but this role may be shifting,” said Nitesh Shah, commodity strategist at WisdomTree. However, he warned that strong growth could negatively affect industrial demand.
Spot platinum increased by 1.5% to $2,667.47/ounce after hitting a peak of $2,684.43; increased by 30% since the beginning of the year. Palladium decreased by 0.7% to $1,907.45/ounce.
