Gold prices edged slightly lower on Thursday, retreating from record levels reached in the previous session, as upbeat U.S. economic data reduced demand for safe-haven assets following easing tensions around Greenland.
By 09:00 ET (14:00 GMT), spot gold was down 0.2% at $4,819.74 per ounce, after touching an all-time high of $4,888.10 on Wednesday. U.S. gold futures for March also slipped 0.2% to $4,820.99 per ounce.
Strong U.S. data weighs on gold
Gold prices softened as investors absorbed fresh economic indicators pointing to continued resilience in the U.S. economy, lowering the immediate need for defensive positioning.
Weekly jobless claims data showed that new filings for unemployment benefits rose less than expected, signaling that the labor market remained steady in January. Initial claims increased by 1,000 to a seasonally adjusted 200,000 for the week ended January 17, according to the U.S. Labor Department, below economists’ expectations of 210,000.
Economic strength was further underlined by third-quarter gross domestic product growth of 4.4% on an annualized basis, exceeding forecasts of 4.3% and accelerating from 3.8% in the previous quarter.
Markets are now focused on core personal consumption expenditures (PCE) inflation for November — the Federal Reserve’s preferred inflation gauge — for clearer signals on the future path of U.S. interest rates.
Trump eases Greenland-related tensions
Gold’s pullback also followed a sharp rally earlier in the week, during which prices surged more than 6% amid heightened geopolitical uncertainty linked to tensions over Greenland and potential U.S. tariffs on European imports.
That rally pushed bullion close to the key psychological level of $5,000 per ounce, as investors sought protection against global risks. However, sentiment shifted after Donald Trump, speaking at the World Economic Forum in Davos, said he would not impose the tariffs and ruled out the use of force regarding the Danish territory.
Trump indicated that a “framework” agreement with NATO allies was taking shape, aimed at resolving the dispute and strengthening long-term cooperation on security and mineral access. A modest rebound in the U.S. dollar also added pressure to gold prices during the session.
Goldman raises long-term gold outlook
Despite the short-term dip, Goldman Sachs raised its December 2026 gold price forecast to $5,400 per ounce from $4,900, citing sustained structural demand.
Goldman strategist Daan Struyven said private-sector diversification into gold is gaining traction and is unlikely to reverse next year, effectively lifting the baseline for future price projections.
While central bank purchases were the main driver of gold’s gains in 2023 and 2024, demand broadened in 2025 as private investors increasingly competed for limited supply. Goldman highlighted rising western gold ETF holdings — up around 500 tonnes since early 2025 — as well as growing physical buying by high-net-worth investors and increased demand for call options as key supportive factors.
Other metals remain firm
Elsewhere in metals markets, most precious and industrial metals traded higher. Silver held near record levels on strong industrial demand, rising 0.8% to $93.36 per ounce, just below this week’s peak of $95.89.
Platinum prices climbed 0.8% to $2,514.95 per ounce, with UBS lifting its price outlook again, citing robust investment demand and tight physical supply.
Copper prices were mixed. London Metal Exchange copper futures rose nearly 0.5% to $12,693.35 per tonne, while U.S. copper futures slipped 0.5% to $5.7372 per pound.
