Gold continues reaching new heights for a third consecutive day amid global uncertainty. Trade war fears and geopolitical risks, especially US President Trump’s tariff threats on eight European countries over Greenland, bolster the safe-haven appeal of gold. <\/p>\n
Despite a slight recovery in the US Dollar, gold remains below $4,900 due to overbought conditions. These conditions, coupled with the anti-risk sentiment and the ‘Sell America’ trade, maintain an upward trajectory for gold. Market players look forward to the US inflation data and GDP growth report for further cues on the Fed’s policy.<\/p>\n
The political tensions over Greenland cause a spike in bond yields, benefiting gold further. A trend of de-dollarisation exacerbates uncertainty, making gold more attractive as the US Dollar weakens. Meanwhile, prospects of fewer rate cuts by the Fed in 2026 provide little relief for the dollar.<\/p>\n
Technical indicators point to a continuation of gold’s uptrend. The Moving Average Convergence Divergence (MACD) and a positive Relative Strength Index (RSI) suggest continued buyer interest despite overbought conditions. Traders are expected to respond positively, containing any corrective pullbacks.<\/p>\n
The US Dollar shows varied performance against major currencies, with strength against the Swiss Franc.<\/p>\n
Looking back at the end of 2025, we saw the flight to safety was intense, pushing gold toward the $4,900 level on the back of US-Europe tariff threats over Greenland. As we move through January 2026, we’ve seen a slight cooling, with gold consolidating around $4,850. This pullback offers a critical decision point for traders in the coming weeks.<\/p>\n
The “Sell America” trade that dominated the last quarter of 2025 appears to be pausing, as the US Dollar Index has since recovered by 1.5% in the new year. This is supported by last week’s hawkish Federal Reserve meeting minutes and a VIX that has retreated from its December highs near 35 to a more stable 22. Recent data also shows that inflows into gold-backed ETFs slowed for the first time in six months, suggesting some profit-taking from large funds.<\/p>\n
Given the overbought conditions we saw at the end of last year, buying outright futures here carries significant risk of a deeper correction. A more prudent strategy would be to purchase call options on gold, for example, with a $4,950 strike price expiring in March 2026. This allows us to participate in any renewed rally while defining our maximum potential loss if the dollar continues to strengthen.<\/p>\n
With implied volatility in gold options having eased from its peak in December 2025, selling out-of-the-money puts could also be an attractive strategy to generate income. For instance, selling a February 2026 put with a strike price near the old channel support of $4,700 would align with the view that any dips will be limited. This trade profits from both time decay and the expectation that gold will not fall sharply in the immediate term.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Gold extends gains amid global tensions, de-dollarisation, and technical support, despite a slightly stronger US Dollar.<\/p>\n","protected":false},"author":62,"featured_media":16977,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-39732","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/39732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=39732"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/39732\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16977"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=39732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=39732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=39732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}