Gold slipped more than 1% to around $4,780 per ounce on Thursday, retreating from a fresh record of $4,836.30 hit on January 22, 2026.
The pullback came after US President Donald Trump stepped back from a proposed tariff threat against Europe over Greenland, signaling that a deal was near and ruling out military action.
The announcement eased immediate fears of geopolitical conflict, reducing some of the safe-haven buying that had driven gold to all-time highs. Even with the drop, the metal remains in a strong upward trend, up 7.85% over the past month and more than 75% higher than a year ago.
Markets, however, are far from calm. European lawmakers have paused approval of the EU–US trade agreement reached last July, keeping uncertainty over transatlantic trade alive.
Meanwhile, a sharp selloff in Japanese government bonds, triggered by election-related tax-cut pledges, has raised concerns about fiscal stability, sustaining some investor demand for gold.
Traders are also watching the delayed US Personal Consumption Expenditures (PCE) inflation report, expected later today, for guidance on the Federal Reserve’s next interest-rate decisions.
The report could influence market expectations and add further volatility to gold and other safe-haven assets.
