Gold loses ground: prices fall after de-escalation around Greenland

Global gold prices plummeted after US President Donald Trump announced his refusal to impose tariffs against European allies. The decision was made against the backdrop of reaching a "framework agreement" on the future of Greenland during a meeting with NATO Secretary General Mark Rutte. Immediately after the geopolitical tension eased, investors' interest in safe-haven assets weakened, leading to a 1.1% drop in the value of bullion. This is reported by Bloomberg, writes UNN.

Details

As early as Wednesday, gold set another absolute record, exceeding the mark of $4888 per ounce. However, on the morning of January 22, during trading in Singapore, the price fell to $4783.27. A similar dynamic is observed in other segments of the precious metals market: silver lost more than 2% of its value, falling to $91.13, and platinum and palladium also became cheaper.

The Impact of Politics on Financial Stability

Analysts attribute the sharp 70% increase in gold prices over the past year to the Trump administration's constant attacks on the independence of the US Federal Reserve System.

The upheaval of the geopolitical order was accompanied by renewed attacks on the Fed, which undermined confidence in the dollar and supported precious metals

However, the current lull in the "Greenland crisis" allowed the American currency and stocks on Wall Street to regain some of their lost positions.

An additional factor in market stabilization was the concern of the US Supreme Court regarding attempts to dismiss Fed Chair Lisa Cook. The judges questioned the legality of such a step, which somewhat reassured investors who feared the complete destruction of the independence of the country's main financial regulator. Currently, markets are awaiting the disclosure of details of the agreement on Greenland, which should determine the long-term dynamics of metal prices. 

Global gold and silver prices set new historical records20.01.26, 21:26 • 5896 views