Gold Prices Reach Nearly $4,826 an Ounce

SadaNews - Gold prices fell after U.S. President Donald Trump withdrew his threat to impose tariffs on European countries, stating that a "framework for a future agreement" regarding Greenland has been reached.

The precious metal dropped by as much as 1.2%, retreating after three days of gains that pushed it to a new record level above $4,826 an ounce on Wednesday.

Trump announced the "framework" for Greenland via social media following his meeting with NATO Secretary-General Mark Rutte, without providing further details.

Trump's brinkmanship policy regarding Greenland had sparked a diplomatic crisis with Europe and raised concerns in the financial markets, which boosted the appeal of gold.

Following his remarks on Wednesday, the dollar and stocks recovered some of their losses earlier in the week. The Bloomberg Dollar Spot Index, a key measure of the strength of the U.S. currency, rose by 0.1%.

Geopolitical Tensions Support Prices

Gold gained over 70% last year, marking consecutive record highs, and this strong rise continued in the early weeks of 2026. This increase came amid geopolitical system disruptions, coinciding with renewed attacks by the Trump administration on the U.S. Federal Reserve, undermining confidence in the dollar and supporting precious metals.

However, Trump's attempt to dismiss Federal Reserve Governor Lisa Cook amid unproven allegations of mortgage fraud was met with concern from U.S. Supreme Court justices during a hearing on Wednesday.

Trump: Powell Won't Be Happy if He Remains on the Fed Board After 2026

Conservative and liberal justices alike expressed skepticism about the move, stating it could undermine the independence of the Federal Reserve and disrupt the markets. The court is expected to issue a ruling by July.

Meanwhile, Goldman Sachs raised its year-end gold price forecast to $5,400 an ounce, citing increased demand from private investors and central banks.

Gold fell by 0.8% to $4,791.53 an ounce at 11:45 AM Singapore time. Silver rose by 0.1% to $93.15. Both platinum and palladium also declined. The Bloomberg Dollar Spot Index, measuring the strength of the U.S. currency, remained unchanged.