Gold cools after Trump drops Europe tariff threat on Greenland
Gold hit a record $4,887.82/oz then eased as Trump backed off Europe tariffs tied to Greenland. Reuters poll: Fed to hold rates this quarter.
Global gold prices cooled on Wednesday (Jan 21, 2026), easing from a fresh all-time high after US President Donald Trump backed away from some of his tougher threats linked to the dispute over Greenland, prompting some selling in gold.
Spot gold rose 0.3% to $4,778.51 an ounce at 3.10pm US Eastern time (2010 GMT), after breaking to a new record of $4,887.82 earlier in the session.
US gold futures for February delivery settled up 1.5% at $4,837.50 an ounce.
Stock markets recovered after Trump withdrew his threat to impose tariffs on several countries that opposed US control of Greenland, saying he had drafted a framework agreement with Nato regarding the island’s future.
“Then, the announcement about tariffs on Europe sent stock markets higher, wiping out most of the precious metals’ gains and putting some pressure on the market,” said Bob Haberkorn, senior market strategist at RJO Futures.
“A lot of assets were sold on this headline. It doesn’t change the trend at all.”
Gold, seen as a safe haven during periods of economic and political uncertainty, rose 64% in 2025 and is up 11% so far in 2026.
Meanwhile, US Supreme Court justices across conservative and liberal wings signalled scepticism over Trump’s plan to remove Lisa Cook, a Federal Reserve governor, in a case that puts central bank independence at stake.
A Reuters poll showed most economists believe the Fed is likely to hold its key interest rate throughout this quarter, and possibly until the end of Chair Jerome Powell’s term in May, while lower interest rates tend to support non-yielding gold.
Spot silver fell 3.6% to $91.17 an ounce, after touching $95.87 on Tuesday.
Soni Kumari, a commodity strategist at ANZ, said: “Silver reaching triple digits looks quite possible given the price momentum we are seeing, but it won’t be a one-way move. There could be price corrections and volatility could rise.”
Platinum slipped 0.1% to $2,460.20 an ounce, after hitting a record high of $2,543.99 earlier in the day. Spot palladium fell 2.1% to $1,825.85.
Morning price update (Jan 22, 2026):
Bloomberg reported that gold fell 0.8% to $4,793.96 an ounce at 7.36am Singapore time. Silver fell 1.3% to $91.86, while platinum and palladium also declined. Gold slid after Trump withdrew his threat to levy import tariffs on European countries and said he had agreed a “future deal framework” on Greenland.
Gold fell as much as 1% early in trading after three straight days of gains that took it to a record $4,888 an ounce on Wednesday. Trump announced the Greenland “framework” on social media after meeting Mark Rutte, Nato secretary-general, but gave no further details. Easing geopolitical tensions supported the US dollar, with the Bloomberg Dollar Spot Index up 0.1%.
