Gold falls after Trump backs away from tariffs over Greenland

Trump announced the Greenland “framework” on social media after meeting North Atlantic Treaty Organization Secretary-General Mark Rutte but gave no further details

Gold fell after US President Donald Trump withdrew a threat to impose tariffs on European nations and said a “framework of a future deal” over Greenland had been agreed.

Bullion fell as much as 1.1% in early trading, pulling back after three days of gains that had taken it to an all-time high above $4,888 an ounce on Wednesday. Trump announced the Greenland “framework” on social media after meeting North Atlantic Treaty Organization Secretary-General Mark Rutte but gave no further details.

Trump’s brinkmanship over Greenland had sparked a diplomatic crisis with Europe and spooked financial markets, adding to gold’s appeal. Following his comments on Wednesday, the dollar and stocks recovered some losses from earlier in the week. The Bloomberg Dollar Spot Index, a key gauge of the US currency’s strength, rose 0.1%.

Gold has gained over 70% in the past year, setting successive records, and its blistering rally has continued in the early weeks of 2026. The upending of the geopolitical order has been accompanied by renewed attacks by the Trump administration on the US Federal Reserve, eroding trust in the dollar and supporting precious metals.

However, Trump’s effort to fire Fed Governor Lisa Cook over unproven mortgage-fraud allegations was met with concern by US Supreme Court justices in a hearing on Wednesday. Conservative and liberal justices both questioned the move, saying it could upend the Fed’s independence and rattle markets. The court is set to rule by July.

Gold fell 1% to $4,783.27 an ounce as of 8:30 a.m. in Singapore. Silver slid 2.1% to $91.13. Platinum and palladium also retreated.