World gold prices continue to attract attention when setting unprecedented highs amid international tensions and expectations of deep interest rate reductions.
In the trading session on January 20, spot gold strongly broke through the 4,700 USD/ounce mark, approaching and for the first time exceeding the 4,800 USD/ounce mark on the morning of January 21, marking an important turning point in the global precious metals market.
This increase takes place as investors increase their search for safe assets amid escalating tensions between the US and Europe related to Greenland. The information that US President Donald Trump threatened to impose taxes on many European countries has increased volatility in the financial market, thereby boosting strong cash flow into gold and silver.
This development is not short-term but within a pre-formed upward trend. Gold prices have just closed 2025 with the strongest increase since 1979, supported by falling US interest rates, continuous buying activity by central banks and a complex geopolitical context.
The market is also betting on the possibility that the US Federal Reserve will cut interest rates this year, with two basic 25-point declines expected from mid-2026, creating a favorable environment for unprofitable precious metals.
While gold prices exceeding the 4,700 USD/ounce mark are considered a strong psychological signal, the 4,800 USD/ounce mark is a symbol of the new price phase of gold.
In early January, Morgan Stanley forecast gold prices to reach 4,800 USD/ounce in Q4/2026, based on the prospect of interest rate reductions, changes in the leadership of the US Federal Reserve and buying demand from central banks and funds. This forecast shows that the market has early seen the possibility of gold maintaining a high price range in the medium term.
However, the rapid increase also makes a part of investors cautious, as gold is considered one of the most crowded transactions on the market today. However, the fact that the precious metal continuously sets new records shows that confidence in the role of preserving gold's value is still very strong in the context of prolonged economic and geopolitical instability.
