Gold prices drifted back toward the $4,900-per-ounce level on Friday as investors paused to catch their breath after a powerful rally that carried bullion to a new record earlier in the week.
Spot gold eased from its all-time high of $4,966.93, with some traders choosing to take profits after the rapid climb. Even so, the retreat has done little to alter the bigger picture. Gold is still on track for its strongest weekly gain since March 2020, supported by growing unease around US assets, lingering geopolitical strains, and a generally uncertain global economic backdrop.
Politics has also been in focus. European Union leaders welcomed US President Donald Trump’s decision to step back from a tariff threat tied to Greenland, a move that helped calm immediate fears of another trade flashpoint. Still, officials made clear they remain prepared to respond should similar tactics re-emerge.
Trump said he had secured “total and permanent” US access to Greenland through an agreement with NATO, though few details have been made public.
Denmark moved quickly to counter the claim, stressing that sovereignty over Greenland is not up for negotiation, underlining the sensitivities surrounding the strategically important Arctic territory.
On the data front, US inflation figures offered little to disrupt expectations. The Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, came broadly in line with forecasts for November.
The outcome reinforced the view that the Fed is likely to keep interest rates unchanged at its meeting next week.
With real yields still constrained and geopolitical risks unresolved, gold continues to draw safe-haven demand despite short-term price swings. Analysts say any renewed pressure on US markets or fresh policy uncertainty could quickly pull buyers back in, leaving bullion well supported near record levels.
