FX.co ★ Gold Falls as Trump Backs Off Tariffs

Gold prices decreased by more than 1%, settling at approximately $4,780 per ounce on Thursday. This decline follows a record high in the previous session. The drop came after President Donald Trump withdrew his proposed tariff threat against Europe concerning Greenland. He indicated that a resolution to the dispute over the Arctic island was imminent, and he dismissed the possibility of military intervention. This development alleviated fears of potential US military action and reduced geopolitical risk. Nonetheless, uncertainty persisted as European lawmakers postponed the approval of the EU-US trade agreement, originally reached in July. Concurrently, a significant selloff of Japanese government bonds, spurred by election-related tax-cut promises, raised fiscal concerns and maintained some demand for safe-haven assets. Investors are now focused on the delayed release of the US Personal Consumption Expenditures (PCE) inflation report, scheduled for later today, which is anticipated to provide further insights into the Federal Reserve's interest rate strategy.