It is no secret that Gold has been on a tear the last 12 months. Even since the start of 2026, it has been on a very decent run. However, I cannot help but wonder if the activity at DAVOS today (Wednesday 21 Jan 2026) may be the moment that momentum for Gold starts to drop off.
After days of speculation, the TACO president strikes again. Not only has Trump gone back on his threat of issuing fresh tariffs against European states, but today he also confirmed he would not use force in order to take Greenland. He is still keen to negotiate on “acquiring” Greenland, but based on what he said in his speech today\*\*, it sounds like if a deal cannot be struck, Trump may back down on Greenland (at least for now).
At the same time, it seems that discussion about an “AI Bubble” is drying up. I am not using this post to argue whether there is or is not a bubble. However, recent news seems to be focussed on other issues - Trump’s Gaza Peace Committee, Greenland, DAVOS, and Venezuela.
Given the points above, I could see Gold shedding a notable percentage of its recent gains made over the last 12 months. In order for this momentum to continue I am beginning to think that new geo-political crises would need to present themselves; for example if Trump were to leave NATO if he was unsuccessful in obtaining Greenland, or if China tried to take Taiwan.
I would welcome the views of others on whether my position may have any credit, or if I am missing the bigger picture. To be clear I do have a position in Gold and have done for a while.
\*\*During Trump’s DAVOS speech earlier today he said if a price could not be struck for Greenland that this would be something “America would not forget” (paraphrased).
Nothing in this post is financial advice. Always do your own research.