Closing the trading session on 20/1, the world spot gold price increased by 92 USD, reaching 4,762 USD an ounce. In the morning session on 21/1, the price continued its ascent, hitting a record 4,775 USD.

Escalating geopolitical tensions continue to fuel safe-haven demand. Fawad Razaqzada, a market analyst at City Index and FOREX.com, noted, "Gold prices surged as investors hedged against political risks. The weak US dollar further reinforced the precious metal's performance, as confidence in US assets seems to be wavering."

World gold prices have risen sharply since the beginning of this week. Chart: Kitco

World gold prices have risen sharply since the beginning of this week. Chart: Kitco

World gold prices have risen over the past few sessions, while stock indexes on Wall Street closed at their lowest in nearly three weeks. This concern stems from US President Donald Trump's threats of tariffs on European countries over the Greenland issue. On 21/1, President Trump is scheduled to deliver a speech at the World Economic Forum (WEF) and meet business leaders there.

The US dollar recorded its sharpest daily decline in a month. A weaker USD makes gold more affordable for buyers using other currencies.

This year, gold prices have increased by 10%, following a 64% rise last year. Expectations of US interest rate cuts further support the precious metal's upward trend. The market currently predicts the Federal Reserve (Fed) will cut interest rates two times this year. US Treasury Secretary Scott Bessent also indicated that next week, President Trump might announce a candidate for the next Fed Chair.

"The 4,800 and 4,900 USD marks are the clear next targets for gold. The longer-term target is 5,000 USD," Razaqzada predicted.

Silver prices also touched 95,87 USD an ounce for the first time. This year, the precious metal has increased by over 30%.

Spot platinum closed at 2,429 USD, up 2,3%. Palladium increased by 1,1% to 1,861 USD.

Ha Thu (according to Reuters, Kitco)