On January 21 during Asian trading hours, spot gold broke through the $4,800 per ounce threshold for the first time. As of the time of writing, spot gold (London gold spot) was trading at $4,828.59 per ounce, up 1.38%.
In market news, Poland's central bank, one of the world's largest gold buyers, announced on Tuesday its approval of a plan to purchase an additional 150 tonnes of gold. Valued at nearly $23 billion at current market prices, this planned acquisition exceeds the total gold reserves of major economies like Brazil and Mexico. Sustained buying by global central banks has been a key driver behind the strong rally in gold prices. On Tuesday (January 20), spot gold rose 1.95% to $4,762.98 per ounce at the New York close, while COMEX gold futures climbed 1.97% to $4,768.6 per ounce. So far this week, the spot gold price has surged by over $200 per ounce, gaining nearly 4%; year-to-date, it has increased more than 11%, rising over $500 per ounce. Dongwu Futures noted that precious metals have been trending upwards with volatility recently. On one hand, the U.S. announcement of additional tariffs on European nations has reignited safe-haven demand, benefiting precious metals. Secondly, the criminal indictment against Powell essentially challenges the Federal Reserve's independence once again, undermining confidence in the U.S. dollar. Finally, the Polish central bank's announcement to increase gold holdings, coupled with a Danish pension fund's decision to sell U.S. Treasury bonds, has provided further support for gold. Key factors to watch going forward include the selection of the Federal Reserve Chair, U.S.-Europe tariff disputes, and geopolitical developments in South America and Greenland. According to reports, Denmark is currently formulating plans to deploy up to 1,000 combat soldiers to Greenland by 2026, with potential involvement from its navy and air force. In a separate development, former U.S. President Donald Trump stated at a White House press conference on the 20th that he would not attend an emergency G7 leaders' meeting in Paris proposed by French President Emmanuel Macron. Zheshang Futures indicated that U.S. tariffs on Europe have triggered trade friction and geopolitical risks, boosting gold's safe-haven appeal. Expectations for Federal Reserve interest rate cuts, coupled with market focus on liquidity and supportive domestic policies stabilizing the macroeconomic environment, have collectively driven precious metal prices higher.
