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Risk aversion is rising, gold prices are pointing at the 5050 mark, and geopolitical factors support oil prices rising.
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Hello everyone, today XM Forex will bring you "[XM Forex Official Website]: Risk aversion is rising, gold prices are pointing at the 5050 mark, and geopolitical support has led to higher oil prices." Hope this helps you! The original content is as follows:
In early trading in Asia on Monday (January 26, Beijing time), spot gold continued to rise, setting a new all-time high of US$5,027.45 per ounce, and is expected to test the US$5,050 per ounce mark within the day, benefiting from geopolitical turmoil and Expectations of U.S. interest rate cuts have jointly pushed investors into safe-haven assets; U.S. crude oil is trading around $61 per barrel. Oil prices are supported by the geopolitical situation. The impact of the United States imposing new sanctions on Iran and sending military forces to the Middle East has intensified market concerns about possible disruptions in crude oil supply in the region.
Stock Market
U.S. stocks closed in mixed performance last Friday. The Dow Jones Industrial Index closed lower due to Intel's pessimistic financial forecast, the S&P 500 Index was basically flat, and the Nasdaq Index rose slightly. All three major indexes recorded declines throughout the week, mainly affected by geopolitical tensions and corporate earnings reports.
Intel’s stock price plummeted 17% due to lower-than-expected quarterly revenue and profit forecasts, dragging down market sentiment. The www.xmtraders.company said it was struggling to meet demand for server chips in artificial intelligence data centers.
Despite last week's decline, investors remain confident in the U.S. economy and corporate earnings, but expect the 2026 midterm election year to bring market volatility. Most giants in the technology sector rose last Friday, with Microsoft, Meta, Amazon and others seeing significant gains. The energy sector has performed well, setting record closing prices for three consecutive days and leading gains so far this year.
Many technology giants will release financial reports this week, and the market will focus on whether www.xmtraders.companies can achieve expected growth to support current valuations. Analysts believe that the earnings season will enter the "verification phase", and www.xmtraders.companies need to prove their revenue capabilities to maintain stock price gains.
Gold Market
The precious metals market is experiencing a historic market. Spot gold continued to rise on Monday, hitting a new all-time high of US$5,027.45 per ounce. Market analysts believe that geopolitical turmoil and expectations of U.S. interest rate cuts have jointly pushed investors into safe-haven assets.
The analysis pointed out that since the beginning of 2026, geopolitical frictions surrounding Greenland, concerns about the independence of the Federal Reserve, and continued economic policy uncertainty have jointly pushed up gold demand. Market opinion believes that gold's strategic value as a hedging tool and a tool for diversifying investment portfolios is becoming increasingly important in the current environment.
Spot silver reached a record high of $106.47 per ounce in early trading on Monday. This rise was not only driven by risk aversion, but also supported by the fundamentals of blocked expansion of refining capacity and long-term market supply shortages.
At the same time, platinum and palladium prices also rose sharply. Platinum has attracted investor demand as a "low-price alternative" to gold, and its price has hit a record high. HSBC analysis pointed out that the platinum market is expected to have a significant structural supply gap in 2026.
Oil Market
Oil prices rose sharply by nearly 3% on Friday, closing at their highest level in more than a week. The market was mainly affected by the United States imposing new sanctions on Iran and sending military forces to the Middle East, exacerbating concerns about possible disruptions to crude oil supplies in the region.
Brent crude oil futures rose 2.8% to US$65.88 per barrel; US crude oil futures rose 2.9% to US$61.07 per barrel. Both major crude oil benchmarks recorded weekly gains of more than 2.5%.
U.S. President Trump announced new sanctions on ships and www.xmtraders.companies transporting Iranian oil, and dispatched a fleet to the Middle East to further pressure Iran. Risks to supply from Iran, OPEC's fourth-largest oil producer, have pushed up oil prices.
In addition, the continued production shutdown of large oil fields in Kazakhstan also supported oil prices. The Tenggez oil field, one of the world's largest oil fields, has suspended production due to a fire, and its operator said output has not yet been restored. JPMorgan Chase analysis pointed out that the suspension of production at the oil field may lead to a sharp decline in Kazakhstan's crude oil production in January, further tightening market supply.
Oil price trends last week were dominated by geopolitical events. Oil prices rose early in the week on tensions over Greenland, but fell on Thursday as tensions eased. Last Friday, as U.S.-Iran relations became tense again, the market focus returned to supply risks in the Middle East, and oil prices resumed their upward trend.
Foreign Market
The foreign exchange market fluctuated significantly last Friday. The Japanese yen rose sharply twice during the session, triggering speculation that the Japanese authorities may conduct exchange rate intervention. The U.S. dollar index continued its decline, recording its largest weekly decline in months.
The yen rose to 155.855 yen against the US dollar in late trading in New York, having hit a nearly 18-month low of 159.2 during the session. Market analysts believe that after the Bank of Japan kept interest rates unchanged, the sudden rebound of the yen may be related to the authorities' exchange rate "inquiry"."Relevant, this is a www.xmtraders.common verbal intervention method designed to send a warning signal to the market. Traders are highly vigilant about the possibility of Tokyo stepping in to curb the yen's depreciation. Analysts pointed out that since the new Prime Minister Sanae Takaichi took office, market concerns about Japan's fiscal situation have continued to put pressure on the yen.
At the same time, the U.S. dollar suffered a broad sell-off. The U.S. dollar index The index closed at 97.571, down more than 1% last week, the largest weekly decline since June last year. The geopolitical situation, especially the tensions surrounding Greenland, is the main factor suppressing the dollar and market risk sentiment, although U.S. President Trump said last week that he had obtained "full access" to Greenland through the agreement and ruled out the possibility of seizing it by force. , but related uncertainty has hit U.S. assets hard at the beginning of the week.
Major non-US currencies strengthened. The euro rose 0.5% against the dollar, at $1.362, while the unexpected increase in British retail data had a limited impact. Investors adjusted their positions amid multiple uncertainties. The above content is all about "[XM Foreign Exchange Official Website]: Risk aversion is rising, gold prices are pointing to the 5050 mark, and geopolitical factors support rising oil prices". They are carefully www.xmtraders.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading!
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