Gold holds near record highs…

22 January 2026

Gold holds near record highs as geopolitical risks remain in focus

Today market analysis on behalf of Bas Kooijman is the CEO and Asset Manager of DHF Capital S.A

Gold remained close to historic highs on Thursday. Caution dominates despite a slight easing in geopolitical tensions between the US and Europe. While some uncertainty has been reduced over the near-term, sentiment remains in check, keeping demand for defensive assets elevated.

US President Donald Trump stepped back from previously announced tariff threats against several European countries following discussions with NATO leadership. The shift points to a tentative diplomatic understanding around Greenland’s future. However, key details remain unresolved, particularly around governance and control, leaving room for further tensions to resurface.

Beyond Europe, multiple global flashpoints continue to support gold’s appeal, with tensions in Eastern Europe and the Middle East remaining elevated. Adding to the supportive backdrop, structural concerns in Japan are also gaining attention. Rising fiscal uncertainty is reinforcing fears of financial fragility, which favour gold.

Looking ahead, attention now turns to US GDP and PCE data later today, which could shape expectations for monetary policy in the US. Any signs of slowing growth or contained inflation would likely reinforce market pricing for more than two rate cuts by year-end, maintaining a constructive outlook for gold.

 

Zaid Barem / ymm