Gold holds firm near record highs amid trade tensions and geopolitical risks
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Gold (XAU/USD) rebounds on Tuesday, recovering from a modest pullback after posting a fresh record high of $5,111 on Monday. The metal remains underpinned by strong safe-haven demand as investors stay cautious amid lingering geopolitical tensions and broader economic uncertainty. At the time of writing, XAU/USD is trading around $5,087, bouncing from an intraday low near $4,990. Trade tensions remain front and center, with US President Donald Trump’s tariff agenda once again unsettling markets. Trump’s aggressive trade rhetoric and repeated use of tariffs as an economic weapon are weighing on the US Dollar (USD). While US equity markets have so far remained resilient, growing concerns over stretched valuations are keeping investor sentiment fragile. At the same time, fears of another US government shutdown are mounting, with lawmakers facing a January 30 funding deadline. Against this backdrop, Bullion continues to attract defensive flows. However, the metal is struggling to attract strong follow-through buying, as traders remain reluctant to place fresh directional bets ahead of the Federal Reserve’s (Fed) interest rate decision due on Wednesday. Looking ahead, the US economic docket is relatively light on Tuesday, with the ADP Employment Change 4-week average, the FHFA House Price Index and the Conference Board’s Consumer Confidence survey scheduled for release. Market movers: Tariffs, Fed, geopolitics in focus US President Donald Trump said on Monday he plans to raise tariffs on South Korean imports to 25% from 15%. In a social media post, Trump blamed South Korea’s legislature for not approving a trade agreement reached last year, adding that higher tariffs would apply to autos, lumber and pharmaceuticals. The move followed a fresh escalation over the weekend, when Trump warned he could impose sweeping 100% tariffs on all Canadian goods if Ottawa proceeds with a trade agreement with China. The US Dollar Index (DXY), which…
Filed under: News - @ January 27, 2026 2:21 pm