Gold falls as Trump softens stance on EU tariff threats
Thu Jan 22 2026
Precious metals retreated on Thursday as geopolitical tensions and safe-haven demand eased after U.S. President Donald Trump backed down from new tariff threats and proposals to annex Greenland by force, while a firmer dollar also pressured prices.
FUNDAMENTALS
* Spot gold was down 0.8% at $4,799.79 per ounce, as of 0136 GMT, after scaling a record peak of $4,887.82 in the previous session.
* U.S. gold futures for February delivery lost 0.6% to $4,806.60 per ounce.
* Trump abruptly stepped back on Wednesday from threats to impose tariffs as leverage to seize Greenland, ruled out the use of force and suggested a deal was in sight to end a dispute over the Danish territory that risked the deepest rupture in transatlantic relations in decades.
* The dollar firmed, benchmark 10-year U.S. Treasury yields eased off of multi-month highs while Wall Street indexes also jogged higher on news of Trump's reversal on tariffs.
* A stronger dollar makes greenback-priced metals more expensive for overseas buyers.
* Meanwhile, U.S. Supreme Court justices signalled scepticism toward President Trump's unprecedented bid to fire Federal Reserve Governor Lisa Cook in a case with the central bank's independence at stake.
* Traders await November's Personal Consumption Expenditures (PCE) data, the Fed's preferred inflation gauge, and weekly jobless claims, due later in the day, for further cues on monetary policy trajectory.
* The U.S. Fed is broadly expected to maintain interest rates at its January 27-28 meeting despite Trump's calls for cuts.
* Gold, which does not yield interest, typically performs well in a low-interest-rate environment.
* Spot silver receded 0.9% to $92.38 an ounce, after hitting a record high of $95.87 on Tuesday.
* Spot platinum lost 2.7% to $2,415.60 per ounce after hitting a record $2,511.80 on Wednesday, while palladium slipped 1% to $1,821.50, retreating from a one-week high hit in the previous session.