Gold prices fall after Trump's remarks
Global gold markets experienced sharp fluctuations on Thursday, with the price of gold falling by more than 1% to around $4,775 per ounce, down from its record high of $4,888 in the previous session, before rising again.
This decline comes in the wake of statements by former US President Donald Trump in which he backed down from his threat to impose tariffs on Europe over the Greenland issue.
Why did the price of gold fall?
The direct cause of the decline was:
- Easing geopolitical concerns: After Trump announced that a peaceful agreement was close on the dispute over the Arctic island of Greenland and ruled out the use of military force.
- Declining demand for safe havens: With political tensions easing, the need to invest in safe-haven assets such as gold diminished.
Factors pushing gold back up
Despite the initial shock, the price of gold quickly began to recover, reaching close to $4,835 per ounce, supported by several factors:
- International trade obstacles: European lawmakers stopped approving the EU-US trade agreement reached in July.
- Global financial concerns: A sharp decline in Japanese government bond prices as a result of election-related tax cut pledges, leading to increased demand for safe assets.
- Waiting for monetary policy indicators: Investors are awaiting the release of the US inflation report (Personal Consumption Expenditures Index), the Fed's preferred measure of inflation, which may provide some clues about the Fed's interest rate intentions.
Future expectations for gold prices
In an important development, Goldman Sachs raised its forecast for the price of gold in December 2026 to $5,400 per ounce, up from $4,900, reflecting an optimistic medium-term outlook for the yellow metal.
Important tips
- Monitor US economic indicators, especially inflation data
- Follow developments in international trade negotiations
- Do not overlook geopolitical factors and their impact on financial markets
- Diversify your investment portfolio to avoid the risks of sharp fluctuations
Gold remains a strategic choice for many investment portfolios in times of economic and political instability, and forecasts indicate that it will continue to be one of the most important global safe-haven assets.
