Gold Hits Record Highs on Safe-Haven Rush While US Imports LNG Amid Arctic Freeze Disruptions

Severe winter weather sweeping the United States has dramatically increased demand for heating and electricity while severely disrupting domestic oil and gas production, with up to 25 billion cubic feet per day of gas output and around 2 million barrels per day of oil knocked offline due to freezing conditions in key regions like the Permian Basin. This tight supply situation drove U.S. natural gas spot prices to record highs of $100 per million British thermal units at one point and pushed crude prices higher, with Brent nearing $70 per barrel. As the world's leading LNG exporter, the U.S. paradoxically had to import LNG cargoes—primarily from Trinidad and Tobago, including shipments by BP and Shell from the Atlantic LNG plant—to meet surging needs, with some deliveries even arriving at export terminals like Elba Island and Cove Point. This unusual reversal stems largely from the Jones Act, which requires U.S.-flagged vessels for domestic shipping and effectively prohibits LNG trade between U.S. ports due to the lack of such specialized carriers, forcing reliance on foreign imports amid the crisis.

Gold (XAU/USD) has pulled back modestly from its fresh all-time high near $5,600 touched earlier on Thursday, trading below the $5,550 level in European session trading while still posting gains for the ninth consecutive day amid ongoing safe-haven demand. The precious metal's parabolic surge of over 10% this week has been driven by investors flocking to traditional havens amid heightened geopolitical tensions—including renewed US-Iran threats, continued Russian attacks on Ukraine, and resurfaced concerns over global growth from Germany's downgraded forecasts—coupled with a weakening US Dollar pressured by doubts surrounding the Federal Reserve's independence. Despite the Fed's decision to hold rates steady (with two governors dissenting for a cut) and Chair Powell emphasizing persistent inflation above target, markets appear focused on potential political interference risks, limiting USD recovery and bolstering gold. Overbought signals on short-term charts have prompted some profit-taking after a roughly $600 rally since the week's start, but the fundamental backdrop—featuring elevated safe-haven flows, central bank buying expectations, and anticipated limited rate cuts—keeps bullish momentum intact, with any meaningful dip likely viewed as a buying opportunity ahead of US weekly jobless claims data.