Gold prices edged lower in Asian trading on Thursday after touching a record high near $4,900 an ounce in the prior session, as U.S. President Donald Trump’s retreat from tariff threats linked to Greenland tensions dampened safe-haven demand. Spot gold declined 0.7% to $4,799.55 an ounce by 20:36 ET (01:36 GMT), after hitting a record peak of $4,888.1 an ounce a session earlier. March U.S. gold futures also slipped 0.8% to $4,801.75 an ounce.
Gold jumped on Wednesday as geopolitical tensions intensified following a transatlantic dispute over Greenland and threats of tariffs on European imports. The rally earlier this week lifted bullion close to the psychological $5,000 level, with investors seeking a safe haven amid heightened global uncertainty.
Prices later pulled back after President Trump, speaking at the World Economic Forum in Davos, said he would refrain from imposing the tariffs and ruled out the use of force in the dispute over the Danish territory. He added that a “framework” agreement was taking shape to ease tensions with NATO allies.
“It’s a long-term deal — the ultimate long-term deal — and it puts everyone in a very strong position, particularly when it comes to security and minerals,” Trump told reporters. Gold also faced mild pressure from a modest rebound in the U.S. dollar, with the Dollar Index trading slightly higher after rising 0.1% in the previous session.
Sources: Bloomberg
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