Daijiworld Media Network – New Delhi
New Delhi, Jan 22: Gold prices recovered from early losses on Thursday as tensions linked to Greenland cooled, even as Goldman Sachs Group Inc. sharply raised its year-end price target for the yellow metal, citing intensifying competition between central banks and private investors for bullion.
Bullion traded near $4,830 an ounce, trimming declines after slipping as much as 1.2% earlier in the day. The recovery came after US President Donald Trump withdrew his threat of imposing tariffs on European nations, announcing a “framework for a future deal” on Greenland following talks with NATO Secretary-General Mark Rutte.
Trump’s earlier brinkmanship over Greenland had triggered a diplomatic standoff with NATO allies and rattled financial markets, boosting gold’s safe-haven appeal. The metal has surged nearly 5% this week alone, as geopolitical uncertainty continues to fuel a strong rally that has seen gold break successive record highs over the past year.
“This instability highlights the weaponisation of commodities, energy and supply chains by dominant global powers,” said Nicky Shiels, head of research at precious metals refiner MKS Pamp SA, adding that such trends remain supportive for gold.
Rising geopolitical risks have also coincided with renewed pressure by the Trump administration on the US Federal Reserve, undermining confidence in the dollar and lending support to precious metals. Concerns intensified after Trump’s move to dismiss Fed Governor Lisa Cook over unproven mortgage-fraud allegations drew sharp reactions during a Supreme Court hearing on Wednesday. The justices warned that such action could threaten the Fed’s independence and unsettle markets, with a ruling expected by July.
While the Trump–Rutte meeting at the World Economic Forum in Davos helped ease immediate US-EU tensions, analysts said underlying support for gold remains strong. “There are still plenty of dip-buyers in the market,” said Nicholas Frappell, global head of institutional markets at ABC Refinery in Sydney.
Meanwhile, Goldman Sachs raised its year-end gold price forecast to $5,400 an ounce from $4,900, citing robust demand from both central banks and private investors. Analysts Daan Struyven and Lina Thomas noted that risks were “significantly skewed to the upside” as investors seek diversification amid persistent global policy uncertainty.
Silver also rebounded, climbing as much as 1.2% to trade above $94 an ounce after earlier falling over 2%. The metal has tripled in value over the past year, driven by a historic short squeeze and strong retail demand. Market uncertainty has been heightened by confusion over Chinese export licence policies and concerns over supply, even as the US refrained from imposing blanket tariffs on critical minerals.
As of 3.04 pm in Singapore, gold was steady at $4,830.01 an ounce. Silver rose 1.2% to $94.20, platinum slipped 0.6%, and palladium gained 0.5%. The Bloomberg Dollar Spot Index was flat.