Spot Gold pulled back from a record high of $4,887.82/oz. on Thursday, as geopolitical tensions eased after US President Donald Trump backed away from threats to impose tariffs as leverage to take control of Greenland.
Trump also ruled out the use of force and said a “framework of a future deal” over Greenland had been agreed.
“Reversal of comments by the U.S. President was one factor that eased geopolitical tensions, and so we see a retracement in prices,” ANZ commodity strategist Soni Kumari was quoted as saying by Reuters.
Investor focus now sets on November’s Personal Consumption Expenditures data, the Federal Reserve’s preferred inflation measure, for more clues on monetary policy path.
Investors are currently expecting at least two rate cuts by the Fed this year, starting as early as June.
Meanwhile, Goldman Sachs has raised its Gold price forecast, now expecting the yellow metal to reach $5,400/oz. by the end of this year, from a prior forecast of $4,900/oz.
Goldman Sachs cited a notable shift in investor behavior, emphasizing that private sector diversification into Gold has become a key force behind its more optimistic outlook.
Spot Gold was last up 0.08% on the day to trade at $4,835.10 per troy ounce.
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