Gold pares gains as Trump eases tariff rhetoric over Greenland

Gold prices trimmed gains on Wednesday, retreating from a record peak, after US President Donald Trump backed down from some of his sternest threats over Greenland.

Spot gold was up 0.3% at USD 4,778.51 per ounce by 3:10 p.m. ET (2010 GMT), after scaling an all-time high of USD 4,887.82 earlier in the session.

US gold futures for February delivery settled 1.5% higher at USD 4,837.50 per ounce.

Equity markets rebounded after Trump withdrew a threat to impose tariffs on a number of nations for their stance on Greenland, saying he had reached the outlines of a deal with NATO on the island’s future.

“So then the announcement on the European tariffs sent the stock market higher, erased most of the gains, and put some pressure on metals,” said RJO Futures senior market strategist Bob Haberkorn.

“You had a liquidation event here just based on the headline here. It doesn’t reverse the trend at all.”

Gold, seen as a safe store of value during economic and political instability, soared 64% in 2025 and is up 11% so far in 2026.

Meanwhile, conservative and liberal US Supreme Court justices signaled skepticism toward Trump’s bid to fire Federal Reserve Governor Lisa Cook in a case with the central bank’s independence at stake.

The Fed is likely to hold its key interest rate through this quarter and possibly until Chair Jerome Powell’s tenure ends in May, according to a majority of economists polled by Reuters.

Lower interest rates are favourable for non-yielding gold.

Spot silver fell 3.6% to USD 91.17 an ounce, after hitting a record high of USD 95.87 on Tuesday.

“Silver’s rise to a three-digit number is looking quite possible given the price momentum we are seeing, but it will not be a one-way move. There could be some correction in prices and volatility can be higher,” said Soni Kumari, ANZ commodity strategist.

Spot platinum was down 0.1% to USD 2,460.20 per ounce after hitting a record USD 2,543.99 earlier in the day. Palladium fell 2.1% to USD 1,825.85.

(Reporting by Sarah Qureshi in Bengaluru, additional reporting by Anushree Mukherjee; Editing by Kirsten Donovan and Shailesh Kuber)