Gold Prices Break Above US$4,800/oz for the First Time as Global Risk-Off Sentiment Intensifies Amid US–EU Tensions

Jakarta, MetalNews Digital — Global gold prices reached a new all-time high, breaking above US$4,800 per troy ounce for the first time, as global risk-off sentiment strengthened over the past 24 hours. The rally was driven by escalating geopolitical tensions between the United States (US) and the European Union (EU), alongside a weakening US dollar.

During Wednesday’s trading session (21 January 2026), gold prices on the JFXGOLD X Physical Gold Exchange platform surged 4.43% to US$4,880.25 per troy ounce, equivalent to IDR 2,701,180 per gram, as of 12:37 WIB. Prices had earlier touched an intraday record of US$4,760.81 per troy ounce.

The surge in gold prices was fueled by rising demand for safe-haven assets amid growing market concerns following remarks by US President Donald Trump, who reiterated his ambition to take control of Greenland. The statement is widely seen as potentially reigniting trade tensions with Europe and creating new strains within the NATO alliance, thereby increasing global investor risk aversion.

Senior market analyst at Capital.com, Kyle Rodda, noted that the rally in gold reflects declining investor confidence in US financial assets. Global investors have begun reducing exposure to the US dollar and government bonds—particularly long-term maturities—and reallocating funds into gold as a hedging instrument.

“Gold price movements reflect concerns over escalating global geopolitical tensions and US protectionist measures,” Rodda said, as quoted by Reuters.

Over the same period, US equity markets experienced a correction, while risk-off sentiment also spread to emerging markets, including Indonesia. Meanwhile, global oil prices posted limited gains, supported by short-term supply concerns, although price movements remained volatile.

From a fundamental perspective, gold benefited from declining real yields and rising demand for long-duration assets. In addition, inflows into gold exchange-traded funds (ETFs) increased again, signaling stronger hedging demand from both institutional and retail investors.

The weakening US dollar—hovering near a three-week low against the euro and Swiss franc—further reinforced gold’s rally. A softer dollar makes gold, which is denominated in US dollars, more affordable for global buyers.

Market participants are also closely monitoring the direction of Federal Reserve monetary policy. The US central bank is widely expected to keep its benchmark interest rate unchanged at its 27–28 January meeting, despite political pressure to cut rates. Historically, a low interest rate environment tends to support gold, which does not generate yield.

In other precious metals markets, price movements were mixed. Silver, platinum, and palladium corrected after previously reaching their respective record highs.

Looking ahead, market participants will focus on key US economic data releases, including labor market and inflation (CPI) figures, as well as further signals from the Federal Reserve. Shifts in interest rate expectations are seen as capable of rapidly reversing market sentiment within the next 48–72 hours.

Gold savings via the JFXGOLD X Physical Gold Exchange platform are accessible through the METALGO+, NUNOMICS, and Pospay Gold features within the Pospay application.

Disclaimer:
The price information and market analysis provided are for informational purposes only and do not constitute investment advice. Market conditions may change at any time. Please conduct your own analysis and considerations before making investment decisions.

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