In mid-January, gold prices broke through $4,700 per ounce, with a monthly increase of nearly 9%. This is not just a minor technical fluctuation; there are solid underlying drivers.

The more tense the global situation becomes, the more attractive gold is — this is almost an unchanging law. Currently, international relations are indeed heating up: geopolitical frictions are frequent, trade protectionism is on the rise, and policy uncertainties in various countries are increasing. In this environment, investors naturally increase their allocation to safe-haven assets. As the oldest and most recognized safe-haven tool, gold benefits first and foremost.

From the perspective of market participants, central banks continue to increase their gold reserves, and institutional investors are also expanding their positions, indicating that professional funds are optimistic about the medium-term prospects of precious metals. Meanwhile, risk assets like US stocks remain high, prompting more investors to consider portfolio hedging — allocating some gold at this critical juncture is indeed a prudent asset allocation strategy.

Regarding the future market, every correction has become an entry opportunity. Historical data shows that short-term pullbacks within such major trends often attract substantial support, indicating that market participants remain optimistic about further upside. As long as the fundamentals remain unchanged, the psychological threshold of 5000 is not out of reach.

The core logic of trading is simple: identify the trend, follow the main direction, and avoid being misled by noise. In the current situation, the demand for gold allocation will only strengthen, not weaken.