Gold Price Breaks Above $5,000 for the First Time
At the market open on Monday, 26 January, gold prices (XAU/USD) formed a bullish gap and moved above the psychological $5,000 level. The rally then continued, with prices climbing close to $5,100.
Strong bullish momentum across precious metals markets has pushed gold up by around 18% since the start of the year, while silver has surged by approximately 50%.
Why Is Gold Rising?The bullish tone is being driven by a combination of a weaker US dollar and heightened demand for safe-haven assets, shaped by the current environment:
→ The ?Greenland issue?: renewed attempts by the Trump administration to acquire Greenland have escalated into a standoff with the EU, bringing the risk of a trade war.
→ Growing concerns about political pressure on the Federal Reserve and the stability of US monetary policy, given the US President?s intention to push for lower interest rates.
→ Central bank demand, harsh rhetoric from the White House towards Canada following its agreement with China, and ongoing tensions surrounding Iran.
All of this is fuelling an unstoppable bullish market. Under such conditions, is a decline in gold prices even possible?
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