By Konstantinos Chrysikos, Head of Customer Relationship Management at Kudotrade
Gold prices extended their rally on Tuesday as investors sought refuge amid renewed escalation in geopolitical and trade-related tensions between the United States and Europe. Demand for safe-haven assets increased after Donald Trump vowed to follow through on his intention to control Greenland. Tariff threat also rattled markets, reviving fears of a broader US-EU trade confrontation.
The broader geopolitical backdrop remains supportive for gold. Tensions continue in Eastern Europe and in the Middle East, and uncertainty surrounding Venezuela’s political and security situation continues to weigh on global risk sentiment. Together, these flashpoints reinforce gold’s appeal.
Institutional demand has also strengthened the bullish narrative. Gold-backed ETFs recorded inflows of 35.8 tonnes in the week ending January 16, the largest weekly increase since mid-October. The United States led with inflows of 27.2 tonnes, while all regions posted net additions, signalling broad-based investor participation.
Looking ahead, market attention turns to the US PCE inflation report due later this week, which could shape expectations around US monetary policy. However, the focus might remain on geopolitical developments.