Trump’s Davos headlines reignited market volatility, sending gold to record highs while Bitcoin and risk assets struggled as traders reassessed geopolitical and trade risks.
In a turbulent week for global markets, rising geopolitical tensions linked to President Donald Trump’s appearance at the World Economic Forum in Davos have coincided with sharp moves across major assets, most notably a renewed surge in gold prices and a pullback in cryptocurrencies. Traders in gold, Bitcoin and risk-linked instruments such as equity CFDs are recalibrating positions amid fresh headlines and shifting risk sentiment.
Gold Surges Toward US$5,000
Gold has emerged as the standout mover, climbing to record levels this week on safe-haven demand. Spot prices surged past US$4,800 per ounce, the highest on record, with analysts widely discussing the prospect of gold topping US$5,000 later in 2026. Gold’s rally reflects heightened geopolitical anxiety triggered by threats of tariffs and unresolved diplomatic frictions between the United States and several European nations over issues including Greenland. For many investors, gold’s reliable store of value in times of uncertainty has revived its appeal, lifting prices even as other commodity markets show mixed signals. Major financial institutions have taken note: Goldman Sachs recently raised its end-of-2026 gold price forecast to US$5,400 per ounce, citing robust private-sector demand and strategic reserve diversification by central banks.
Crypto Slips as Gold Climbs
As gold climbed, major cryptocurrencies lagged. Bitcoin slid below the US$90,000 mark amid broader risk-off sentiment, wiping significant value from the crypto universe. Ethereum and other digital assets also trended lower as traders de-risked positions ahead of key macroeconomic data and geopolitical clarity.
This divergence highlights a broader narrative taking shape in financial markets: during renewed geopolitical stress, traditional safe-havens like gold are taking precedence over digital alternatives, at least in the short term despite the increasing institutional adoption of crypto seen over recent years.
Equities and Oil: Mixed Reactions Under the Davos Spotlight
Equity markets showed varying performance throughout the week. Initial tariff threats and trade uncertainty dragged major indices sharply lower, with reports of significant drops in US stock markets. However, as diplomatic language softened around the Davos forum and some tariff proposals were withdrawn, equities staged partial recoveries by the close of trading. Oil prices also nudged higher amid geopolitical risk premia and supply-side whispers, though crude has trailed gold’s blockbuster performance. Comments from Trump referencing strategic oil stocks and Venezuela in Davos underscored the complexity of energy markets amid shifting geopolitical narratives.
What Traders Are Watching Now
For CFD traders and risk managers, the coming days are likely to hinge on:
- Macro data releases such as US inflation (PCE) and employment figures, which could recalibrate rate outlooks and influence gold and equity positions.
- Diplomatic developments at the World Economic Forum and any ensuing policy announcements on tariffs or trade agreements.
- Volatility trends across crypto markets, particularly Bitcoin and Ethereum.
- Safe-haven dynamics, especially if gold momentum accelerates toward new milestones.
Traders following these developments can track breaking updates and price reactions in our Market News section
Conclusion
This week’s price action shows the stark contrast in how markets are responding to geopolitical narratives: gold’s revival on safe-haven flows versus crypto’s vulnerability to risk aversion. As global leaders conclude discussions in Davos, the real test for traders will be whether these moves mark a durable shift in market structure or if repositioning ahead of fresh data will reset the landscape once more.
