Gold Price: XAU/USD reaches levels near $4,900 on risk aversion

LONDON (January 21) Gold (XAU/USD) remains unstoppable, underpinned by a sour market sentiment on the back of escalating tensions between the US and the EU and a broader de-dollarisation process. The precious metal has rallied more than 2% on the day and nearly 5% so far this week to change hands at $4,860 at the time of writing.

Demand for safe havens like Gold remains strong on Wednesday, as investors hold their breath ahead of US President Trump’s speech at the Davos World Economic Forum, due later on Wednesday.

The US President has rattled markets this week with his obsession with taking control of Greenland and the threat of additional tariffs on countries opposing his plans. These actions have revived the “Sell America” trade seen after April’s “Liberation Day,” sending the US Dollar Index (DXY) on a tailspin.

FXStreet