Gold Trading Alert: Trump's Aggressive Actions Shake the World! Gold Prices Surge Near All-Time Highs, Will the 2026 Bull Market Continue?
2026-01-07 07:34:50
Amid escalating global geopolitical tensions, gold, as a traditional safe-haven asset, has performed exceptionally well. On Tuesday, spot gold prices continued the previous trading day's gains, rising further by about 1% to close at $4,494 per ounce. On Wednesday (January 7th) in early Asian trading, spot gold fluctuated at high levels, reaching $4,500.27 per ounce by 7:30 AM, a price level very close to the all-time high of $4,549.71 per ounce set on December 24th last year. Meanwhile, US gold futures for February delivery also rose 1%, closing at $4,496.10 per ounce. This surge in gold prices is primarily driven by increased investor concerns about global uncertainty, particularly the widespread safe-haven demand triggered by the US military action against Venezuela over the weekend, which propelled a large influx of funds into the precious metals market.
Jim Wyckoff, senior analyst at Kitco Metals, points out that precious metal traders are currently more sensitive to risk than participants in the stock and bond markets. He emphasizes that the US raid on Venezuelan President Maduro over the weekend further stimulated continued safe-haven demand for gold and silver. This reflects the market's sensitive reaction to geopolitical events, which is directly translating into strong buying pressure on gold.
Last weekend, the U.S. military launched a raid in Caracas, the Venezuelan capital, successfully arresting President Nicolás Maduro and extraditing him to New York. On Monday, Maduro pleaded not guilty to drug charges in court, maintaining his innocence. This event not only marks a dramatic upheaval in Venezuela's political landscape but also exacerbates international tensions. Against the backdrop of the ousted Maduro regime, U.S. President Trump plans to meet with executives from several oil companies at the White House later this week to discuss how to quickly revitalize Venezuela's struggling oil industry.
According to sources, the meeting, likely to be held on Friday, will focus on boosting Venezuelan crude oil production. The country's oil infrastructure is severely outdated due to a long-term lack of investment, and exports have plummeted from over 3 million barrels per day two decades ago to less than 1 million barrels per day today. US government officials believe that introducing new equipment and technology can quickly revive oil production. Currently, Chevron is the only major Venezuelan oilfield operator in the US, while companies like ExxonMobil and ConocoPhillips, which previously dominated the country's oil production, had their projects nationalized by former President Chavez. These events have further intensified market concerns about geopolitical risks, driving a continued rise in demand for safe-haven assets such as gold.
In response to the Venezuelan crisis, US President Trump has repeatedly reiterated his desire to control Greenland in recent weeks, an idea first raised during his first term in 2019. He considers Greenland crucial to US military security and has criticized Denmark for failing to adequately protect the island. In an interview, White House Chief of Staff Miller downplayed concerns about international law and Danish sovereignty, emphasizing that the world is governed by strength and power. This statement has drawn strong backlash from leaders of major European countries.
On Tuesday, the leaders of France, Britain, Germany, Italy, Poland, Spain, and Denmark issued a joint statement declaring that Greenland belongs to its people and that only Denmark and Greenland can decide on matters related to it. They emphasized that security in the Arctic must be achieved through the joint efforts of NATO allies, including the United States, and pointed out that European allies have significantly increased their presence and investment in the Arctic to ensure security and deter potential adversaries. The Dutch Prime Minister and the Polish Prime Minister also publicly supported the statement, with the Polish Prime Minister specifically stating that there should be no attacks or threats between NATO member states, otherwise the alliance would lose its meaning.
Greenlandic Prime Minister Nielsen welcomed the united support of European leaders and called for dialogue with the United States based on mutual respect and international law. He emphasized that Greenland's status is rooted in the principle of territorial integrity. Denmark has pledged substantial funds to strengthen its Arctic military presence. US Special Envoy Rudd stated that Trump aims to provide economic opportunities for Greenland and expressed confidence that the president will not resort to force. Greenland, the world's largest island with a population of only about 57,000, possesses significant strategic value, being a key location for the US ballistic missile defense system and rich in mineral resources, which could help the US reduce its dependence on other countries. This dispute further highlights global geopolitical instability, providing additional support for gold prices.
Market participants are closely watching upcoming U.S. economic data, particularly Friday's nonfarm payrolls report, which is expected to show an increase of around 60,000 jobs in December, slightly below the previous month's level. This will provide important clues about the Federal Reserve's interest rate path.
Traders currently widely expect the Federal Reserve to implement two interest rate cuts this year. Richmond Fed President Barkin stated that monetary policy needs to be finely adjusted based on data to balance the risks of unemployment and inflation.
Morgan Stanley predicts that gold prices could rise to $4,800 per ounce by the fourth quarter of this year, mainly due to falling interest rates, changes in the leadership of the Federal Reserve, and strong buying demand from central banks and funds.
Furthermore, spot silver prices surged 6% on Tuesday, closing at $81.21 per ounce, and continued their upward trend in Asian trading on Wednesday, reaching a high of $82.65 per ounce by 7:30 AM, close to its all-time high of $83.94. Silver is projected to rise by as much as 147% by 2025, driven by both industrial demand and investor enthusiasm.
UBS wealth management experts pointed out that central bank purchases, increased fiscal deficits, lower interest rates, and ongoing geopolitical risks will drive gold to break through the $5,000 mark by the end of the first quarter.
The dollar rose slightly against major currencies, but gains were limited as investors awaited more data to assess the outlook for U.S. monetary policy. U.S. Treasury yields rose on Tuesday as traders focused on key employment data and corporate bond issuance pressures. Divergent views among Federal Reserve officials also reflected uncertainty about the policy path, with some calling for aggressive rate cuts to support economic growth, while others emphasized the need for cautious fine-tuning.
In conclusion, the global financial markets at the beginning of 2026 are at a crossroads of high geopolitical risks and monetary policy adjustments. Gold's status as a safe-haven asset has been further solidified, with a 64.4% increase last year, marking its best annual performance since 1979. With the unfolding events in Venezuela and Greenland, and the support of potential interest rate cuts by the Federal Reserve, gold prices are expected to continue challenging new highs. Investors should closely monitor upcoming economic data and international developments, as these factors will determine whether gold can successfully break through the $5,000 mark and begin a stronger upward cycle.
(Spot gold daily chart, source: FX678)
At 07:32 Beijing time, spot gold was trading at $4498.54 per ounce.
Jim Wyckoff, senior analyst at Kitco Metals, points out that precious metal traders are currently more sensitive to risk than participants in the stock and bond markets. He emphasizes that the US raid on Venezuelan President Maduro over the weekend further stimulated continued safe-haven demand for gold and silver. This reflects the market's sensitive reaction to geopolitical events, which is directly translating into strong buying pressure on gold.
The dramatic changes in Venezuela and the US arrest of Maduro have sent shockwaves around the world.
Last weekend, the U.S. military launched a raid in Caracas, the Venezuelan capital, successfully arresting President Nicolás Maduro and extraditing him to New York. On Monday, Maduro pleaded not guilty to drug charges in court, maintaining his innocence. This event not only marks a dramatic upheaval in Venezuela's political landscape but also exacerbates international tensions. Against the backdrop of the ousted Maduro regime, U.S. President Trump plans to meet with executives from several oil companies at the White House later this week to discuss how to quickly revitalize Venezuela's struggling oil industry.
According to sources, the meeting, likely to be held on Friday, will focus on boosting Venezuelan crude oil production. The country's oil infrastructure is severely outdated due to a long-term lack of investment, and exports have plummeted from over 3 million barrels per day two decades ago to less than 1 million barrels per day today. US government officials believe that introducing new equipment and technology can quickly revive oil production. Currently, Chevron is the only major Venezuelan oilfield operator in the US, while companies like ExxonMobil and ConocoPhillips, which previously dominated the country's oil production, had their projects nationalized by former President Chavez. These events have further intensified market concerns about geopolitical risks, driving a continued rise in demand for safe-haven assets such as gold.
Trump again mentions Greenland; European leaders unite to defend sovereignty.
In response to the Venezuelan crisis, US President Trump has repeatedly reiterated his desire to control Greenland in recent weeks, an idea first raised during his first term in 2019. He considers Greenland crucial to US military security and has criticized Denmark for failing to adequately protect the island. In an interview, White House Chief of Staff Miller downplayed concerns about international law and Danish sovereignty, emphasizing that the world is governed by strength and power. This statement has drawn strong backlash from leaders of major European countries.
On Tuesday, the leaders of France, Britain, Germany, Italy, Poland, Spain, and Denmark issued a joint statement declaring that Greenland belongs to its people and that only Denmark and Greenland can decide on matters related to it. They emphasized that security in the Arctic must be achieved through the joint efforts of NATO allies, including the United States, and pointed out that European allies have significantly increased their presence and investment in the Arctic to ensure security and deter potential adversaries. The Dutch Prime Minister and the Polish Prime Minister also publicly supported the statement, with the Polish Prime Minister specifically stating that there should be no attacks or threats between NATO member states, otherwise the alliance would lose its meaning.
Greenlandic Prime Minister Nielsen welcomed the united support of European leaders and called for dialogue with the United States based on mutual respect and international law. He emphasized that Greenland's status is rooted in the principle of territorial integrity. Denmark has pledged substantial funds to strengthen its Arctic military presence. US Special Envoy Rudd stated that Trump aims to provide economic opportunities for Greenland and expressed confidence that the president will not resort to force. Greenland, the world's largest island with a population of only about 57,000, possesses significant strategic value, being a key location for the US ballistic missile defense system and rich in mineral resources, which could help the US reduce its dependence on other countries. This dispute further highlights global geopolitical instability, providing additional support for gold prices.
Federal Reserve policy expectations and employment data are attracting close attention.
Market participants are closely watching upcoming U.S. economic data, particularly Friday's nonfarm payrolls report, which is expected to show an increase of around 60,000 jobs in December, slightly below the previous month's level. This will provide important clues about the Federal Reserve's interest rate path.
Traders currently widely expect the Federal Reserve to implement two interest rate cuts this year. Richmond Fed President Barkin stated that monetary policy needs to be finely adjusted based on data to balance the risks of unemployment and inflation.
Morgan Stanley predicts that gold prices could rise to $4,800 per ounce by the fourth quarter of this year, mainly due to falling interest rates, changes in the leadership of the Federal Reserve, and strong buying demand from central banks and funds.
Furthermore, spot silver prices surged 6% on Tuesday, closing at $81.21 per ounce, and continued their upward trend in Asian trading on Wednesday, reaching a high of $82.65 per ounce by 7:30 AM, close to its all-time high of $83.94. Silver is projected to rise by as much as 147% by 2025, driven by both industrial demand and investor enthusiasm.
UBS wealth management experts pointed out that central bank purchases, increased fiscal deficits, lower interest rates, and ongoing geopolitical risks will drive gold to break through the $5,000 mark by the end of the first quarter.
The dollar rose slightly against major currencies, but gains were limited as investors awaited more data to assess the outlook for U.S. monetary policy. U.S. Treasury yields rose on Tuesday as traders focused on key employment data and corporate bond issuance pressures. Divergent views among Federal Reserve officials also reflected uncertainty about the policy path, with some calling for aggressive rate cuts to support economic growth, while others emphasized the need for cautious fine-tuning.
Overall Outlook: Bright Prospects for a Gold Bull Market
In conclusion, the global financial markets at the beginning of 2026 are at a crossroads of high geopolitical risks and monetary policy adjustments. Gold's status as a safe-haven asset has been further solidified, with a 64.4% increase last year, marking its best annual performance since 1979. With the unfolding events in Venezuela and Greenland, and the support of potential interest rate cuts by the Federal Reserve, gold prices are expected to continue challenging new highs. Investors should closely monitor upcoming economic data and international developments, as these factors will determine whether gold can successfully break through the $5,000 mark and begin a stronger upward cycle.
(Spot gold daily chart, source: FX678)
At 07:32 Beijing time, spot gold was trading at $4498.54 per ounce.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
