Greenland Cools, Gold Steadies
Gold prices stabilized after tensions in Greenland began to cool, halting the flight to safety that had previously driven record highs. In recent trading, gold held around $4,825/oz, still about $60 shy of the record high it had approached in several consecutive sessions.
The main trigger came from US President Donald Trump's withdrawal of tariff threats against European countries after mentioning a "framework agreement" regarding Greenland with NATO Secretary General Mark Rutte. According to European officials briefed on the matter, the framework included strengthening NATO's presence in the Arctic, discussions on the deployment of US defense assets, and a direction for cooperation that would close the gap to Chinese interests—including in mineral matters.
Previously, Trump's maneuvers regarding Greenland had sparked a diplomatic crisis with European allies and roiled the market, flooding gold with demand as a safe haven. This year alone, gold has gained about 12%, continuing a long rally that has seen prices break multiple records over the past year.
Despite the easing of tensions, gold's bullish foundation has not completely disappeared. Some market participants believe that global uncertainty actually demonstrates how commodities, energy, and supply chains can be "weaponized" in geopolitical tug-of-war—and this situation typically keeps investors comfortable holding gold.
Beyond geopolitical factors, the market is also monitoring a domestic issue in the US: political pressure on the Federal Reserve. Trump's efforts to push for the dismissal of Fed Chair Lisa Cook have raised concerns about the central bank's independence, and this issue is seen as eroding confidence in the dollar—providing a cushion for the precious metal.
Meanwhile, Trump also claimed his meeting with Ukrainian President Volodymyr Zelenskiy went well and reiterated hope that the war could end, which has helped lower the risk appetite. However, many investors remain on guard as uncertainty could return at any time.
In terms of projections, Goldman Sachs raised its year-end gold price target to $5,400/oz (from $4,900), citing strong investor demand and central bank buying. This reinforces the narrative that the market tends to treat any correction as a buying opportunity.
Among other metals, silver rebounded and broke through the $94/oz area after previously weakening, indicating continued high volatility. Platinum and palladium also strengthened, while the Bloomberg Dollar Index edged lower—leaving precious metals open to movement, even though the safe-haven euphoria has subsided.
Source: Newsmaker.id
