Insights 
VT 
Key Points
- XAUUSD climbs above $4,660 after touching a record high at $4,689.39.
- Tariff threats tied to Greenland escalate geopolitical risk and pressure the US dollar.
Gold prices surged on Monday as market participants rotated sharply into safe-haven assets following renewed geopolitical tensions. XAUUSD jumped 1.6% to $4,666.11 as of 0551 GMT, after briefly touching a record high of $4,689.39 earlier in the session.
The move marks another leg higher in what has already been a strong start to the year for bullion.
The rally followed comments from US President Donald Trump over the weekend, where he threatened to impose additional tariffs on European countries unless the United States is allowed to buy Greenland.
The remarks escalated tensions with Europe and injected fresh uncertainty into global trade and political relations.
Tariff Threats Weigh on Risk Assets and the Dollar
Trump’s comments triggered a broad risk-off reaction across markets. US stock futures declined, while the US dollar weakened, increasing the appeal of non-yielding assets such as gold.
The shift in sentiment reinforced gold’s role as a hedge against political risk and policy uncertainty.
European Union ambassadors are reportedly preparing retaliatory measures should the tariffs be implemented, raising the risk of a prolonged standoff. This has added another layer of instability to an already fragile geopolitical backdrop, keeping demand for gold firmly supported.
Technical Analysis
Gold continues its bullish ascent, breaking through recent resistance with strong upward momentum.
The alignment of the MA5, MA10, MA20, and MA30 confirms a healthy trend structure, with all moving averages pointing upward and price steadily respecting dynamic support.
The MACD (12,26,9) shows a widening gap between the MACD line (96.89) and the signal line (85.33), supported by growing green histogram bars—indicating strengthening bullish momentum.
This suggests further upside potential in the near term if momentum sustains.
Near-term Outlook for Gold
Looking ahead, XAUUSD remains sensitive to developments around trade policy, geopolitical tensions and movements in the US dollar. As long as tariff risks remain unresolved and political uncertainty stays elevated, gold is likely to remain well supported.
In the near term, consolidation above the $4,600 level would reinforce the bullish bias.
A sustained break above the recent $4,689.39 high would open the door for further upside, while any pullbacks are likely to attract buyers seeking exposure to a still-favourable macro backdrop.
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