NEW YORK, Jan 21, 2026, 17:03 EST — After-hours
- Spot gold surged to a record $4,887.82, then eased back as the U.S. session wound down
- Trump claimed he has the framework of a deal with NATO on Greenland, which could reduce safe-haven demand
- Traders are focused on U.S. inflation figures due Jan. 22 and the Federal Reserve’s meeting set for Jan. 27-28
Gold prices slipped from a record peak on Wednesday after U.S. President Donald Trump softened his toughest comments on Greenland, cooling a rally that had driven bullion past $4,800 an ounce.
Spot gold climbed 0.3% to $4,778.51 an ounce by 3:10 p.m. ET, after hitting a fresh record high of $4,887.82 earlier. Meanwhile, U.S. gold futures for February delivery closed up 1.5% at $4,837.50.
Gold’s swings are tied tightly to “headline risk” and shifting rate forecasts: it surges when traders seek protection and retreats once worries ease. Simply put, it remains the default “safe haven” whenever political or market turmoil looms. Reuters
Wednesday’s sharp reversal showed just how fast demand can evaporate when the headlines shift. U.S. stocks jumped back after Trump announced a framework deal, while the dollar found its footing, taking the edge off the earlier gold rally.
Stocks rallied once Trump backed off his threat to slap tariffs on nations over Greenland, Reuters reported. He said a deal with NATO on the island’s future was taking shape.
“The announcement on European tariffs initially pushed the stock market up, but then it wiped out most of those gains and weighed on metals,” said Bob Haberkorn, senior market strategist at RJO Futures. He described the decline as a liquidation move, not a shift in the overall trend. Reuters
Gold’s rally is also driven by expectations around interest rates. Since it yields no interest, the metal usually gains when investors anticipate borrowing costs will either drop or remain flat. Reuters pointed to a poll indicating the Fed is set to keep rates steady through this quarter.
Separately, U.S. Supreme Court justices appeared doubtful about Trump’s attempt to remove Federal Reserve Governor Lisa Cook, a case raising questions about the Fed’s independence. That uncertainty has pushed markets to hold onto some gold as a hedge.
Other precious metals took a bigger hit as the trade cooled off. Spot silver dropped 3.6% to $91.17, pulling back from Tuesday’s record high of $95.87. Platinum also slipped after reaching its own record earlier. ANZ commodity strategist Soni Kumari cautioned that silver’s rally might not be “a one-way move,” predicting corrections and increased volatility ahead. Reuters
Gold bulls face a major threat if clearer policy signals sap demand for safe havens, particularly should the dollar gain strength and bond yields climb once more. Wednesday’s pullback highlighted just how quickly crowded trades can unravel after one key headline.
Traders are now turning their attention to the U.S. personal consumption expenditures (PCE) price index, set for release on Jan. 22. The data will offer fresh insight into inflation trends just days before the Federal Reserve’s Jan. 27-28 meeting and the press conference on Jan. 28.
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