Gold prices paused near record highs on Thursday as investors reassessed risk after former US President Donald Trump signalled progress toward a possible deal involving Greenland. The move eased some geopolitical and trade-related tensions that had recently fuelled a strong rally in the precious metal, prompting mild profit-taking in early trading.
Earlier, gold had surged sharply as markets reacted to heightened uncertainty surrounding Trump’s hardline stance on Greenland and the threat of new tariffs on European countries. These developments weakened risk sentiment, driving investors toward safe-haven assets such as gold amid concerns over global trade disruption and diplomatic fallout.
However, sentiment shifted after Trump indicated that a “framework” for a future deal on Greenland could be reached and confirmed that he would refrain from imposing the previously threatened tariffs. This softer tone helped stabilise global markets, strengthened the US dollar slightly, and reduced immediate demand for safe-haven assets, leading gold prices to ease from their peaks.
Market participants noted that the pause in gold’s rally was also driven by profit-booking after the metal touched historic levels. With prices having climbed rapidly in a short period, some investors chose to lock in gains while awaiting clearer signals on geopolitics, interest rates, and inflation.
Despite the short-term pullback, analysts say the broader outlook for gold remains supportive. Ongoing geopolitical uncertainty, central bank buying, and expectations of monetary easing in major economies continue to underpin demand. As a result, while gold has paused near record highs for now, investors remain alert to fresh developments that could reignite safe-haven buying.