Bitcoin Price Holds Steady At $91,000 As Global Geopolitical Tensions Influence Market Stability
Introduction to Gold Prices
The price of gold has been a significant topic of discussion in the European market, particularly on Friday, when it declined due to the strengthening of the US dollar against other global currencies. This decline occurred ahead of the release of new US jobs data and the potential ruling by the Supreme Court on Trump’s tariff measures. Despite this pullback, gold is on track to record its first weekly gain of the new year, supported by safe-haven buying amid escalating global geopolitical tensions.
Price Overview
Gold prices today fell by 0.55% to $4,453.01, from an opening level of $4,477.86, and recorded a session high at $4,484.19. At Thursday’s settlement, the precious metal gained 0.5%, marking a fourth gain in the past five sessions, amid rising global geopolitical tensions. This indicates that despite the decline, gold is still experiencing an overall upward trend due to its safe-haven appeal.
US Dollar Influence
The US Dollar Index rose by 0.15% on Friday, extending gains for the fourth consecutive session and reaching a four-week high, reflecting continued strength in the US currency against a basket of global currencies. This surge in the US dollar is a significant factor contributing to the decline in gold prices, as a strong dollar makes gold more expensive for investors holding other currencies. Data released this week showed an unexpected rebound in US services sector activity in December, along with a slight increase in weekly jobless claims, contrary to market expectations. These figures suggest that the US economy ended 2025 on solid footing, which may give the Federal Reserve more time to assess its next step toward further interest rate cuts.
US Interest Rates
Federal Reserve Governor Stephen Miran, whose term ends later this month, said that a sharp cut in US interest rates is needed to sustain economic growth. Minneapolis Fed President Neel Kashkari, a voting member of the Federal Open Market Committee this year, expressed concerns about a potential sharp rise in the unemployment rate. According to CME Group’s FedWatch tool, the probability of keeping US interest rates unchanged at the January 2026 meeting currently stands at 86%, while the probability of a 25 basis point rate cut is priced at 14%. Investors are currently pricing in two US interest rate cuts over the course of next year, while Federal Reserve projections point to a single 25 basis point cut. These differing expectations highlight the uncertainty surrounding the future of US interest rates and their potential impact on gold prices.
Supreme Court Ruling
The US Supreme Court may issue a ruling on whether President Trump can invoke the International Emergency Economic Powers Act (IEEPA) to impose tariffs without congressional approval. If the ruling goes against Trump, it could lead to significant legal battles and potential refunds of previously paid tariffs, totaling around $150 billion. This ruling has the potential to disrupt US trade policy and ongoing negotiations with partner countries, further adding to the geopolitical tensions that are supporting gold prices.
Weekly Trading and Gold Outlook
Over the course of this week, gold prices are up by about 2.8%, on track to record the first weekly gain of 2026, supported by strong safe-haven demand amid escalating global geopolitical tensions. Independent analyst Ross Norman noted that gold prices have seen a slight pullback due to profit-taking but emphasized that the main driver at present is the strength of the US dollar ahead of the nonfarm payrolls data. Norman added that many commodity indices are reweighting their exposure to precious metals and gold at the start of the new year, creating some temporary weakness from rebalancing, but overall conditions remain positive. HSBC expects gold prices to rise to $5,000 per ounce in the first half of 2026, driven by rising geopolitical risks and debt levels.
SPDR Fund Holdings
Holdings of SPDR Gold Trust, the world’s largest gold-backed ETF, were unchanged for the second consecutive day, keeping total holdings steady at 1,067.13 metric tons. This stability in ETF holdings indicates a consistent level of investor interest in gold as a safe-haven asset, despite the short-term fluctuations in gold prices. As global geopolitical tensions and economic uncertainties continue, the demand for gold as a secure investment is likely to persist, influencing its price dynamics in the coming months.
