ETO Markets Global Pulse: Gold Tags $5,110, Pulls Back 2%

Market Review

According to ETO Markets monitoring, on January 26 (Monday), spot gold surged on safe-haven demand. Prices broke above USD 5,100 per ounce and hit an intraday high of USD 5,110.86. Gold closed up around 2% at USD 5,077.22 per ounce.

In early Asian trading on January 27 (Tuesday), spot gold eased from the highs and hovered near USD 5,048 per ounce. Markets continue to price ongoing geopolitical risks and tariff headlines, keeping volatility elevated.

Global Headlines

1) Trump Raises Korea Tariffs

Trump said South Koreas parliament failed to meet commitments under an agreement with the U.S. He announced a tariff increase to 25% from 15% on Korean goods including autos, timber, and pharmaceuticals, alongside broader reciprocal measures. The escalation added to global trade tension and extended safe-haven demand.

2) Zelenskyy Signals Tri-Party Talks

Zelenskyy said Ukraine, the U.S., and Russia may hold another three-party meeting on February 1, and he hopes to accelerate engagement. Markets are watching for any shift in spillover risks, with geopolitical uncertainty still feeding into safe-haven pricing.

3) Canada Pushes Trade Diversification

Canadian Prime Minister Mark Carney said Canada will strengthen economic resilience and diversify trade to reduce reliance on the U.S. He also outlined tax cuts, faster housing construction, and expanded social support. The package aims to cushion tariff shocks and stabilize domestic expectations.

4) CME Prices FED On Hold

CMEs FedWatch shows a 3.9% probability of a 25 bps cut at the January meeting, versus 96.1% for no change. By March, the probability of a cumulative 25 bps cut is priced at 15.5%. Rate expectations remain a key driver for precious metals.

5) Silver Margin Risk Returns

InvestingLive analyst Adam Button warned silvers thinner liquidity and rapid price moves can trigger margin hikes. He said another adjustment could occur this week. He also noted hedging by miners via futures may add intermittent selling pressure. Crowded positioning and leverage can amplify short-term swings.

ETO Markets Analyst View (Spot Gold)

The intraday bias remains constructive, but volatility at the top is rising. Key levels are USD 5,005 as support and USD 5,100 as resistance. Holding above USD 5,005 keeps the setup in a strong range and leaves room for another test of USD 5,100, with USD 5,140 as the next upside reference.

A break below USD 5,005 would raise the risk of a deeper pullback toward USD 4,965, and potentially USD 4,900. That would shift the tape into a “surge then digest” phase. With tariff and event headlines still frequent, price action is likely to stay in a high-range regime where key levels validate the trend.

RSI is recovering from an oversold reading, suggesting downside momentum has eased. It does not mean volatility is over. Chasing price at these levels should be paired with tighter attention to drawdowns and liquidity shifts.

With a data-light calendar but headline density high, drivers can rotate quickly. Gold may continue to digest through elevated range trading. Stay focused on tariff signals, geopolitical developments, and shifts in rate expectations.

Disclaimer

The information contained herein is for general reference only and does not constitute investment advice, a solicitation, or an offer to buy or sell any financial products.

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