Gold prices steadied on Thursday after falling more than 1% earlier in the session, as concerns over the US Federal Reserve’s independence countered easing geopolitical tensions following President Donald Trump’s retreat from tariff threats against the European Union.
Spot gold was steady at $4,836.09 per ounce at 0740 GMT, after hitting a record high of $4,887.82 in the previous session. US gold futures for February delivery were flat at $4,838.60.
Markets reacted to Trump’s remarks, though uncertainty persists, supporting gold prices, analysts said. Trump stepped back from using tariffs to pressure Denmark over Greenland, ruled out the use of force, and signalled a potential deal to avert what had threatened the worst transatlantic rift in decades.
Speaking at the World Economic Forum in Davos, Trump also said he was close to selecting a new Federal Reserve chair and expressed support for keeping White House economic adviser Kevin Hassett in his current post as a Fed governor.
Meanwhile, US Supreme Court justices, during arguments over Trump’s bid to dismiss Fed Governor Lisa Cook, appeared to favour preserving the central bank’s independence in setting monetary policy.
Investors are awaiting US personal consumption expenditures data and weekly jobless claims later on Thursday for further clues on the Fed’s policy outlook. The Federal Reserve is widely expected to keep interest rates unchanged at its January meeting.
Gold, which does not yield interest, typically benefits in a low-rate environment. Goldman Sachs raised its December 2026 gold price forecast to $5,400 per ounce from $4,900, citing continued central bank demand, particularly from emerging economies.
Spot silver rose 1.1% to $94.26 an ounce, after hitting a record high earlier this week. Platinum slipped 0.4% to $2,472.33 after touching a record peak, while palladium gained 0.6% to $1,850.31.
— Reuters
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