Gold Surges Above $4,800 as Geopolitical Tensions Boost Safe-Haven Demand

Gold (XAU) price surged above $4,800 in early Asian trading on escalation of political risk. Investors move towards safe havens on increasing uncertainty. The upcoming speech by President Donald Trump in Davos keeps the markets on edge. The continuing rally in precious metals is a sign of strong demand for gold and silver (XAG) as a defence.

Meanwhile, the tensions between US and Europe provide fuel for the move. Trump’s threat of making European nations pay tariffs poses trade risks. According to the reports, the European Parliament may suspend a US trade deal, which increases the geopolitical tensions. These developments strengthen the position of gold as a crisis hedge.

Silver enjoys the same flows of safe haven. Gold breakout boosts sentiment for precious metals in general. Silver tends to lag at the beginning, but it takes off as risk aversion spreads. The increase in geopolitical stress is good for upside movement in silver prices.

Gold Technical Analysis

The gold price surged after making a bottom at long-term support. This support is defined by the ascending broadening wedge pattern at $4,260, which sent the price above $4,800. The strong movement in the gold market indicates continued upside in the next few weeks.

The short-term price action for spot gold also shows good support around the $4,550 support. The formation of a triangle pattern and the breakout from this triangle are indications of strong bullish momentum in the gold market. The price is likely to continue higher in the short-term.

Silver Technical Analysis

The silver price has found a strong resistance in $90 to $100 area and consolidates at a higher level. This resistance is defined by the ascending broadening wedge pattern, whereby a breakout above $100 will be accompanied by new milestones for silver market. If the strong support at $60 holds, the silver price will likely accelerate towards higher milestones in 2026.

The strong resistance at the $90 to $100 level is also seen on the 4-hour chart, which shows the formation of an ascending broadening wedge pattern. However, the price structure has created a strong bullish price structure within the ascending broadening wedge pattern. This price structure indicates that any correction towards the $60 to $70 area will be viewed as a strong buying opportunity.

US Dollar Technical Analysis

The daily chart for the US Dollar Index shows that the index continues to trade lower below the 200-day SMA. The strong decline following the new tariffs on European nations suggests the continued negative price action in the US Dollar Index. This negative price action is also reflected in the precious metals markets, which are making new records.

The short-term bearish price action in the US Dollar Index is also seen on the 4-hour chart, which shows that US Dollar Index is headed towards the 96.50 support. A break below 96.50 will suggest further downside to the 90 level.

Final Words

Gold and silver prices are increasing as investors are concerned about geopolitical events and are looking for safe havens. Gold has breached above $4,800 and could rise further, while silver is near important $100 level. The charts also indicate strong patterns in favor of additional gains ahead. At the same time, the U.S. dollar is getting weaker, which usually helps gold and silver go up. Both metals appear to be strong and could continue their climb in 2026.