Tariffs on Hold, Gold Trims Gains
The gold rally, which briefly hit a new record on Wednesday (January 21), finally slowed after US President Donald Trump signaled a calmer stance on the tariff war over Greenland. Trump said he was refraining from imposing tariffs on European countries that reject his plan, while claiming there was already a "framework agreement" for discussions on Greenland and the Arctic region.
The market immediately responded: the dollar strengthened slightly, and gold, which had reached its daily peak of $4,888 earlier that morning, began to correct. According to the latest update, the spot gold price was trading around $4,809/oz, up around 0.9%.
Silver was the hardest hit. After a brief euphoria at the peak, silver reversed and is now around $92.06/oz, down around 2.7%.
Trump also mentioned that there would be further discussions regarding the "Golden Dome" missile defense system—and he emphasized that Greenland is considered crucial from a security perspective. For the negotiations, Trump appointed JD Vance, Marco Rubio, and Steve Witkoff as his key team.
On the other hand, the issue of central bank independence has also calmed investors. The US Supreme Court has signaled its skepticism regarding Trump's attempt to fire Fed Chair Lisa Cook, citing concerns that it could undermine the Fed's independence and trigger market turmoil.
Meanwhile, industrial metals remain volatile: LME copper has been trading at around $12,761.5/ton for the last three months. The Bloomberg Dollar Index (BBDXY) was recorded at around 1,202.88 during the same session, indicating the dollar has not yet fully recovered.
Source: Newsmaker.id
