Gold prices rose but retreated from record highs as Trump said he would not take Greenland by force.
2026-01-22 01:05:53
Gold prices surged on Wednesday (January 21), but retreated from another record high set overnight. US President Trump, speaking at the World Economic Forum in Davos, Switzerland, stated that he would not use force to seize Greenland. This statement eased some market risk aversion after Trump had previously said weeks earlier that he did not rule out using military force to take the island. Profit-taking by short-term futures traders weakened silver prices. February gold futures (typically a dozen dollars higher than spot gold) rose $71.60 to settle at $4837.40 an ounce; March silver futures fell $1.321 to $93.315 an ounce.
Gold and silver prices continued their record-breaking rally this week, primarily driven by the Greenland crisis and the plunge in the Japanese government bond market, fueling continued safe-haven demand. Overnight, February gold futures on the Comex exchange hit a record high of $4,891.10 per ounce, while March silver futures peaked at $95.78 per ounce on Tuesday. Reports indicate that central bank gold purchases will provide further support for gold prices—the National Bank of Poland has approved a plan to buy an additional 150 tons of gold, and the Central Bank of Bolivia has resumed purchasing gold for its foreign exchange reserves.
Global bond traders are closely watching the Japanese government bond market. Citigroup stated that the sharp increase in volatility in the Japanese government bond market could spread to other markets, forcing some investors to reduce their portfolio's risk exposure.
The report states, "Mohammed Apabhai indicated that risk parity funds may need to sell up to one-third of their current holdings, potentially triggering a bond sell-off of up to $130 billion in the US alone. Since the beginning of last year, Japanese government bond market volatility has been rising due to escalating fiscal concerns, generating significant global spillover effects. Analysts currently consider Japan a major 'exporter' of global bond volatility." Japanese Prime Minister Sanae Takaichi's campaign promise to cut food taxes caused long-term government bond yields to surge—on Tuesday, yields on both 30-year and 40-year Japanese government bonds rose by more than 25 basis points, reaching new highs. Given that Japan will hold a special election on February 8, traders and investors are concerned that market volatility will further increase in the future.
Key external market developments today: Crude oil prices rose slightly to around $60.50 per barrel; the US dollar index remained largely unchanged; the yield on the 10-year US Treasury bond is currently around 4.25%.
(COMEX Gold Daily Chart Source: FX678)
From a technical perspective, the next upside target for February gold futures bulls is a close above the key resistance level of $5,000.00/oz; the short-term downside target for bears is to push futures prices below the strong technical support level of $4,539.10/oz. The first resistance level is the historical high of $4,891.10/oz, followed by $4,900.00/oz; the first support level is the overnight low of $4,761.50/oz, followed by $4,700.00/oz.
March silver futures are in a clear technical advantage for bulls, with the next upside target being a close above the key resistance level of $100.00/oz. Bears' short-term downside target is to push prices below the strong support level of $85.00/oz. The first resistance level is the all-time high of $95.78/oz, followed by $96.00/oz; the next support level is today's low of $92.115/oz, followed by $91.00/oz.
Note: The gold market operates primarily through two pricing mechanisms: the spot market, where prices are quoted for immediate purchase and delivery; and the futures market, which determines the price for delivery on a future date. Due to year-end position adjustments and market liquidity, the most actively traded gold futures contract on the Chicago Mercantile Exchange (CME) is currently the December delivery contract.
Gold and silver prices continued their record-breaking rally this week, primarily driven by the Greenland crisis and the plunge in the Japanese government bond market, fueling continued safe-haven demand. Overnight, February gold futures on the Comex exchange hit a record high of $4,891.10 per ounce, while March silver futures peaked at $95.78 per ounce on Tuesday. Reports indicate that central bank gold purchases will provide further support for gold prices—the National Bank of Poland has approved a plan to buy an additional 150 tons of gold, and the Central Bank of Bolivia has resumed purchasing gold for its foreign exchange reserves.
Global bond traders are closely watching the Japanese government bond market. Citigroup stated that the sharp increase in volatility in the Japanese government bond market could spread to other markets, forcing some investors to reduce their portfolio's risk exposure.
The report states, "Mohammed Apabhai indicated that risk parity funds may need to sell up to one-third of their current holdings, potentially triggering a bond sell-off of up to $130 billion in the US alone. Since the beginning of last year, Japanese government bond market volatility has been rising due to escalating fiscal concerns, generating significant global spillover effects. Analysts currently consider Japan a major 'exporter' of global bond volatility." Japanese Prime Minister Sanae Takaichi's campaign promise to cut food taxes caused long-term government bond yields to surge—on Tuesday, yields on both 30-year and 40-year Japanese government bonds rose by more than 25 basis points, reaching new highs. Given that Japan will hold a special election on February 8, traders and investors are concerned that market volatility will further increase in the future.
Key external market developments today: Crude oil prices rose slightly to around $60.50 per barrel; the US dollar index remained largely unchanged; the yield on the 10-year US Treasury bond is currently around 4.25%.
(COMEX Gold Daily Chart Source: FX678)
From a technical perspective, the next upside target for February gold futures bulls is a close above the key resistance level of $5,000.00/oz; the short-term downside target for bears is to push futures prices below the strong technical support level of $4,539.10/oz. The first resistance level is the historical high of $4,891.10/oz, followed by $4,900.00/oz; the first support level is the overnight low of $4,761.50/oz, followed by $4,700.00/oz.
March silver futures are in a clear technical advantage for bulls, with the next upside target being a close above the key resistance level of $100.00/oz. Bears' short-term downside target is to push prices below the strong support level of $85.00/oz. The first resistance level is the all-time high of $95.78/oz, followed by $96.00/oz; the next support level is today's low of $92.115/oz, followed by $91.00/oz.
Note: The gold market operates primarily through two pricing mechanisms: the spot market, where prices are quoted for immediate purchase and delivery; and the futures market, which determines the price for delivery on a future date. Due to year-end position adjustments and market liquidity, the most actively traded gold futures contract on the Chicago Mercantile Exchange (CME) is currently the December delivery contract.
- 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.
