Gold Retreats From Record High as Trump Tariff Reversal Eases Safe-Haven Demand

Gold prices fell on Thursday as easing geopolitical tensions reduced safe-haven demand, after U.S. President Donald Trump backed away from fresh tariff threats and ruled out the use of force to annex Greenland. Spot gold slipped 0.8% to $4,796.75 an ounce, retreating from a record high of $4,887.82 hit in the previous session, while U.S. gold futures also declined by a similar margin.

Analysts said Trump’s reversal helped calm markets, supporting equities and lifting the dollar, which added pressure on dollar-priced metals. A firmer greenback makes gold more expensive for overseas buyers. Meanwhile, investors also weighed signals from the U.S. Supreme Court showing scepticism toward Trump’s attempt to remove Federal Reserve Governor Lisa Cook, a case seen as critical for the central bank’s independence.

Markets are now focused on upcoming U.S. economic data, including the Fed’s preferred inflation gauge, the Personal Consumption Expenditures index, and weekly jobless claims, for clues on interest rate policy. While gold often benefits from low rates, other precious metals also eased, with silver edging lower, platinum falling nearly 2% from record highs, and palladium slipping modestly. Despite the pullback, Goldman Sachs raised its December 2026 gold price forecast to $5,400 an ounce, citing strong central bank demand.

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