Gold prices hit $4,736 per ounce; trade tensions and debt worries

The surge in gold comes after renewed disputes between the US and Europe over Greenland, a strategic Arctic territory. The US has threatened tariffs on several European countries, including France, Germany, and the UK. These threats have raised fears of wider economic retaliation. Investors are moving away from stocks and the US dollar into gold and silver. Silver has also surged, reaching a record $95.50 per ounce. Experts say this shift shows a clear “flight to safety” during global uncertainty.

Government debt concerns are another factor driving gold prices higher. Japan’s bond market is under pressure after tax-cut proposals by Prime Minister Sanae Takaichi. High deficits in the US, Europe, and Japan have increased fears that inflation may be used to manage debt. The weakening US dollar makes gold cheaper for international buyers. Central banks are also increasing gold reserves, reinforcing its role as a safe, long-term investment.

From a technical perspective, gold continues to show strong upward momentum. Prices are trading well above the 100-period Simple Moving Average. The Moving Average Convergence Divergence (MACD) indicator signals ongoing buying interest. However, the Relative Strength Index (RSI) is near 70, which may indicate overbought conditions. Key resistance levels are at $4,770 and $4,800, while support levels are at $4,640 and $4,570. Analysts say short-term corrections could occur, but the overall trend remains positive.

Analysts at J.P. Morgan and HSBC believe gold could reach $5,000 per ounce by mid-2026 if current trade tensions, debt concerns, and central bank purchases continue. However, some investors warn that gold may be a crowded trade, which could increase volatility.