Last Updated on January 29, 2026 by Deon
The “Sell America” Trade — Eroding Trust
The main driver is widespread abandonment of the US Dollar. A combination of unpredictable trade policies and conflicting signals from Washington has international investors deeply rattled.
Fed Independence: The relentless public assaults on the Federal Reserve are creating fears that monetary policy is becoming a political prop.
Currency Debasement In as much as the administration is telling the world that a weaker dollar is desired to power U.S. exports, global capital’s flight from “paper promises” has quickened, and there is only one asset which can’t be printed: Gold.
Geopolitical Flashpoints: The Iran Factor
As if global economic uncertainty weren’t bad enough, there is also the rumble of war adding a huge “risk premium” to gold prices.
The Tehran Standoff: New warnings of military action against Iran on Wednesday — and a rapid rejoinder from the government there — roiled markets.
Safe-Haven Sprint In This Case: War With the perception of conflict, the market’s reflex is universal: Sell equities, buy gold. This knee jerk flight to safety has given way for gold to test the $5,598 level.
Central Bank Fever
This is not mere retail FOMO (Fear Of Missing Out); the “big money” is afoot. Central banks around the world are diversifying their reserves like never before.
Strategic Autonomy: China, India and even Poland are responding to the fear of sanctions and dollar volatility by treating gold as their main reserve asset.
Longstanding Demand: Central banks that are buying gold are not “price-sensitive” buyers; they need to diversify, supporting any price correction.
Technical Outlook: Overstretched but Unbowed
From a technical perspective, gold’s 9-day surge has taken indicators into “extreme” territory.
The RSI Factor: The Relative Strength Index (RSI) at around 85 is generally shouting that a “correction whoopee could be in the offing.”
The New Floor: Even as the rally appears to be overexhausting, the underlying fundamentals are so robust that any “dip” is being perceived as a buying opportunity. Immediate support lies at $5,500 and bulls have their sites set on the $5,810 Fibonacci target.
The Verdict: A Structural Shift
We are witnessing more than a price spike; we are seeing a structural rebasing of what gold is worth in an increasingly fractured world. A temporary pause makes sense following such a vertical spike, however and tone of the “Resistance” is higher.
“Gold is not just pricing a crisis,” an analyst says. “It’s pricing a new reality where traditional safe assets no longer feel, unambiguously so,” Mr. Bloch said.
