By Joseph Dahrieh, Managing Director at Tickmill
Gold prices remained volatile, but traded broadly near the same levels seen during the last few trading sessions. The market could stabilize gradually after its last selloff, but could continue to react to new data and geopolitical developments. The latter could fuel demand for safe-haven assets.
In the Middle East, US-Iran talks remain a point of focus. While diplomacy offers the potential to ease tensions, tense rhetoric and military incidents fuel some caution. Any setback or escalation would likely revive gold-buying interest. In Eastern Europe, hostilities continued despite recent peace talks, reinforcing a persistent geopolitical risk premium that underpins gold.
On the macro front, US economic data painted a mixed picture. Activity indicators suggested resilience, yet labour market signals pointed to a gradual loss of momentum. This divergence has kept expectations alive that the Federal Reserve may adopt a more accommodative stance in 2026, which supports gold’s medium-term outlook.
Institutional flows remain a key pillar. Gold-backed ETFs recorded a strong inflow of 44.8 tonnes in the week to January 30, the largest since mid-October. Asia led the demand, offsetting modest outflows in Europe and reinforcing the broader bullish structure for the precious metal.