Global spot gold prices surged by 103 USD to 4,935 USD per ounce at the close of trading on 22/1. On the morning of 23/1, the market continued its upward trend, hitting 4,954 USD, its highest point to date.

Several factors are driving this increase. "Geopolitical tensions, a weakening dollar, and expectations of the Federal Reserve (Fed) cutting interest rates are boosting gold demand," stated Peter Grant, a precious metals strategist at Zaner Metals. The Dollar Index, which measures the US dollar's strength against six major currencies, fell by 0.4% on 22/1, making gold less expensive for buyers outside the US.

Global gold prices rose sharply on 22/1. Chart: Kitco

In a related development, US President Donald Trump announced that planned import tariffs, scheduled to take effect on 1/2, would not be applied to European allies. This decision followed a meeting with NATO Secretary General Mark Rutte, where they reached a "framework for a future agreement related to Greenland and the entire Arctic region."

However, details of this agreement are not yet public. Denmark has affirmed that its sovereignty over Greenland was not discussed.

Domestically, in the US, the personal consumption expenditures (PCE) price index report indicated a continued rise in consumption during October and November 2025. This suggests a strong third consecutive quarter of US consumption growth. Consequently, the market maintains its forecast for two Fed interest rate cuts in the latter half of this year.

Grant advises investors to capitalize on market dips. "Price adjustments down are opportunities to buy gold. We expect prices to reach 5,000 USD in the short term," he added.

The surge extended to other precious metals. Global spot silver also reached a record 96.5 USD per ounce. Nikos Tzabouras, a senior analyst at Tradu, commented, "Silver has an even stronger foundation than gold. While its role as a reserve asset may not equal gold, this metal is still benefiting from safe-haven buying and the weakening US dollar."

Platinum prices increased by 4.6% to a record 2,601 USD per ounce. Palladium closed at 1,900 USD, up 3.3%.

Ha Thu (according to Reuters, Kitco)