Gold Price Forecast: XAU/USD hits fresh highs above $4,700 on trade tensions 

💡 DMK Insight

Gold’s surge past $4,720 signals a strong risk-off sentiment, and here’s why that’s crucial for traders right now: The escalating trade tensions between the US and EU, particularly regarding Greenland, are driving investors toward safe-haven assets like gold. This record high not only reflects immediate geopolitical concerns but also suggests a broader market anxiety that could lead to increased volatility in equities and other risk assets. Traders should keep an eye on how this tension evolves, as further escalation could push gold even higher, potentially testing psychological levels like $4,800. But let’s not overlook the flip side: if negotiations improve or if the economic data from the US shows strength, we could see a pullback in gold prices. Monitoring the daily close around $4,720 will be key; a sustained break above could trigger more buying, while a failure to hold this level might invite profit-taking. Watch for shifts in sentiment, especially from institutional players who could amplify these moves.