Gold prices steadied near record levels on Thursday after slipping more than 1% earlier in the session, as concerns over the independence of the U.S. Federal Reserve offset easing geopolitical tensions following Donald Trump’s decision to withdraw a tariff threat against the European Union.
Spot gold was little changed at $4,836.09 an ounce at 09:40 am, after hitting an all-time high of $4,887.82 in the previous session. U.S. gold futures for February delivery were also flat at $4,838.60 an ounce.
“The market initially reacted to Trump’s comments, but underlying concerns remain, which is limiting declines in both gold and silver, particularly amid uncertainty over the Fed’s independence,” said Soni Kumari, commodities strategist at ANZ.
On Wednesday, Trump reversed his threat to impose tariffs on Europe and ruled out the use of force, signaling a possible path toward resolving a dispute that had risked a major transatlantic rupture.
Speaking to CNBC in Davos, he said he was close to naming a new Fed chair and indicated support for keeping White House economic adviser Kevin Hassett on the Fed’s board.
Investors are now looking to November PCE data and weekly jobless claims due later on Thursday for signals on the Fed’s policy outlook. The central bank is expected to hold rates steady at its January meeting despite Trump’s calls for cuts, a backdrop that typically supports non-yielding assets such as gold.
Goldman Sachs has raised its forecast for gold prices in December 2026 to $5,400 an ounce from $4,900, citing sustained central bank demand. The bank expects central banks to buy an average of 60 tonnes of gold in 2026 as emerging economies continue to diversify their reserves.
Elsewhere, silver rose 1.1% to $94.26 an ounce, after reaching a record $95.87 on Tuesday. Platinum slipped 0.4% to $2,472.33 an ounce following a record high of $2,511.80 on Wednesday, while palladium climbed 0.6% to $1,850.31 an ounce.
