Last Updated on January 21, 2026 by Deon
Gold Price Forecast: XAU/USD reaches levels near $4,900 on risk aversion
Gold rallies on risk aversion and reaches fresh record highs just below $4,900.
Demand for safe havens remains high, ahead of Trump’s speech at Davos.
Technical indicators, at heavily overbought levels, hint at some correction.
Gold Price Forecast: XAU/USD reaches levels near $4,900 on risk aversion
Gold (XAU/USD) remains unstoppable, underpinned by a sour market sentiment on the back of escalating tensions between the US and the EU and a broader de-dollarisation process. The precious metal has rallied more than 2% on the day and nearly 5% so far this week to change hands at $4,860 at the time of writing.
Demand for safe havens like Gold remains strong on Wednesday, as investors hold their breath ahead of US President Trump’s speech at the Davos World Economic Forum, due later on Wednesday.
The US President has rattled markets this week with his obsession with taking control of Greenland and the threat of additional tariffs on countries opposing his plans. These actions have revived the “Sell America” trade seen after April’s “Liberation Day,” sending the US Dollar Index (DXY) on a tailspin.
Technical analysis: Technical indicators signal an overstretched rally
