Gold holds near record highs…

27 January 2026

Gold Holds Near Record Highs as Trade and Geopolitical Risks Sustain Safe-Haven Demand

Market comments on behalf of Inki Cho Financial Markets Strategist Consultant to Exness

Gold extended its advance on Tuesday, trading close to record levels after hitting an all-time high in the previous session. The move reflects strong safe-haven demand amid escalating trade frictions and persistent geopolitical uncertainty.

On Monday, Donald Trump threatened to raise tariffs on goods from South Korea. The renewed tariff rhetoric has added to concerns over global growth and reinforced demand for safe-haven assets such as gold.

Institutional flows continue to underpin the rally. Gold ETFs recorded robust inflows of 34.5 tonnes last week, led by investments from Asia, highlighting sustained investor appetite. At the same time, ongoing purchases by central banks are expected to persist this year, supporting a constructive medium-term outlook for the metal.

Geopolitically, risks remain elevated. Tensions in the Middle East continue to intensify, while in Eastern Europe, recent diplomatic efforts have yet to translate into a meaningful de-escalation on the ground. This backdrop continues to increase gold’s appeal.

Market focus now turns to the US Federal Reserve’s policy meeting. While rates are expected to remain unchanged, investors will closely scrutinise comments from Chair Jerome Powell. A dovish signal could propel gold to fresh records, while a more cautious tone may cap gains. Even so, the broader outlook remains firmly bullish.

 

Zaid Barem / ymm