Published Thu, Jan 22, 2026 · 12:22 PM
GOLD and other precious metals fell on Thursday as geopolitical tensions and safe-haven demand eased after US President Donald Trump backed down from new tariff threats and proposals to annex Greenland by force, while a firmer dollar also pressured prices.
Spot gold was down nearly 1 per cent to US$4,793.63 per ounce, as of 0332 GMT, after scaling a record peak of US$4,887.82 in the previous session.
US gold futures for February delivery lost 1 per cent to US$4,790.10 per ounce.
“Reversal of comments by the US President was one factor that eased geopolitical tensions, and so we see a retracement in prices,” said ANZ commodity strategist Soni Kumari.
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, 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.
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Meanwhile, US Supreme Court justices signalled scepticism toward 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 US Fed is broadly expected to maintain interest rates steady at its January meeting despite Trump’s calls for cuts.
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Gold, which does not yield interest, typically performs well in a low-interest-rate environment.
“We still prefer gold as it has central bank backing while it also remains on firmer ground as compared to other industrially-exposed precious metals as geopolitical tensions still persist,” Kumari added.
Goldman Sachs on Thursday raised its gold price forecast for December 2026 to US$5,400 from US$4,900/oz previously.
Spot silver was steady at US$92.27 an ounce, after hitting a record high of US$95.87 on Tuesday.
Spot platinum lost 1.8 per cent to US$2,438.43 per ounce after touching a record peak of US$2,511.80 on Wednesday, while palladium edged 0.1 per cent higher to US$1,840.40. REUTERS
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