Gold prices declined on Thursday as investor risk appetite increased following U.S. President Donald Trump’s decision to withdraw threats of Greenland-related tariffs, while profit-taking after recent gains contributed to additional downward pressure. As of 08:57 a.m. ET (1357 GMT), spot gold fell 0.4% to $4,819.39 per ounce, after earlier declining nearly 1% during the session. U.S. gold futures for February delivery were down 0.3% to $4,821 per ounce.
U.S. stock index futures rose on Thursday, indicating renewed buying interest after Trump scaled back his tariff threats against European countries. Bart Melek, global head of commodity strategy at TD Securities, commented, “There has been a significant resurgence in risk appetite, prompting the market to become less cautious with risk assets, which reduced demand for gold and led to some profit-taking.”
President Trump introduced his Board of Peace, initially aimed at supporting Gaza’s ceasefire but expected to take on broader responsibilities. Regarding Ukraine, Trump noted that peace negotiations were “getting close,” ahead of his meeting with President Volodymyr Zelenskiy in Davos.
Meanwhile, U.S. Supreme Court justices, during arguments concerning Trump’s attempt to dismiss Federal Reserve Governor Lisa Cook, appeared to support the principle of maintaining the central bank’s independence in setting monetary policy. The Federal Reserve is widely anticipated to keep interest rates unchanged at its upcoming policy meeting.
Investors are now focused on November Personal Consumption Expenditures (PCE) data, scheduled for release at 10 a.m. ET, seeking further insights into the Fed’s policy direction.
Elsewhere, spot silver increased by 0.2% to $93.47 per ounce after reaching a record high of $95.87 on Tuesday. Melek added, “Silver appears somewhat overextended and may begin to correct once retail pressure subsides. We are seeing increased global liquidity, which could eventually trigger a reversal in prices.”
Spot platinum gained 1.5% to $2,520.45 per ounce after hitting a record peak of $2,511.80 on Wednesday, while palladium advanced 1.1% to $1,860.25.
