Last Updated on January 20, 2026 by Deon
Gold is a good indicator of how the world feels right now. Gold prices soared on Tuesday.
They broke records and traded at $4.725, even flirting with $ 4,750. Gold is the ultimate security blanket in the world of investment. This price spike is a sign that people are concerned about the future. Is a new trade war on the Horizon? This latest rally was sparked by the weekend. The President Trump reignited trade tensions in the world by announcing tariffs against eight European countries.
This move was surprising linked to Greenland’s ongoing dispute. Leaders in Europe warned that they were ready to strike back. Investors are shaken by this “tit-fortat” rhetoric. Many investors are putting their money into gold rather than investing in stocks. They fear that a full-blown US/EU trade war will disrupt the global economic system. Dollar Weakening The surge isn’t driven by trade talks.
The protectionist stance of the President has put downward pressure to the US dollar. It recently dropped to a 2-week low. The logic: When gold is “cheaper”, it becomes more attractive to international investors, and the price rises. The Edge of the World A heavy geopolitical atmosphere is sustaining the “fear” factor beyond the headlines in the business world:
Conflict in Progress:
The bottom line: Why “Bulls”, or the “Bulls”, are Winning The “Gold Bulls”, or investors who bet that prices will rise, are in control of a world which feels more and more unpredictable. Gold remains the preferred insurance against chaos as long as geopolitical boundaries remain tense and trade wars continue to loom. Russia-Ukraine War continues with no clear end in sight. Middle East tensions: The persistent instability in the Middle East keeps global energy and financial markets on high alert.
