Gold falls after Trump backs away from tariffs over Greenland

Gold fell after US President Donald Trump withdrew a threat to impose tariffs on European nations and said a “framework of a future deal” over Greenland had been agreed.

Bullion fell as much as 1.2%, pulling back after three days of gains that took it to an all-time high above $4,888 an ounce on Wednesday. Trump announced the Greenland “framework” on social media after meeting North Atlantic Treaty Organisation Secretary-General Mark Rutte but gave no further details.

Trump’s brinkmanship over Greenland had sparked a diplomatic crisis with NATO allies in Europe and spooked financial markets, adding to gold’s appeal. The precious metal is still up more than 4% for the week, with geopolitical tensions fueling the continuation of a blistering rally that has seen bullion smash successive records over the past year.

This recent instability reveals “the weaponization of commodities, energy, and supply chains” by dominant world powers, Nicky Shiels, head of research at precious metals refiner MKS Pamp SA, said in a note. This would support gold, she added.

Increased geopolitical risk has been accompanied by the Trump administration’s renewed attacks on the US Federal Reserve, eroding trust in the dollar and supporting precious metals. The US president’s effort to fire Fed Governor Lisa Cook over unproven mortgage-fraud allegations was met with concern at a hearing on Wednesday, where Supreme Court justices said the move could upend the Fed’s independence and rattle markets. The court is set to rule by July.

Goldman Sachs Group lifted its year-end gold price forecast to $5,400 an ounce from a previous estimate of $4,900, citing intensifying demand from private investors and central banks. The bank’s analysts, including Daan Struyven, said in a note dated Jan. 21 that risks were “significantly skewed to the upside because private-sector investors may diversify further on lingering global policy uncertainty.”

Silver recovered to trade above $93 an ounce after falling as much as 2.3% in early trading on Thursday. The white metal has tripled over the past year, boosted by a historic short squeeze and a wave of retail buying that left banks and refiners scrambling to meet unprecedented demand.

Confusion surrounding a Chinese policy update on export licenses has amplified the perception of scarcity, while the market remains on edge even after the US refrained from slapping blanket import tariffs on critical minerals including silver and platinum. Silver inventories linked to Comex remain elevated, according to the latest data.

Gold fell 0.8% to $4 791.53 an ounce as of 11:45 a.m. in Singapore. Silver edged up 0.1% to $93.15. Platinum and palladium retreated. The Bloomberg Dollar Spot Index, a key gauge of the US currency’s strength, was flat.

© 2026 Bloomberg

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