Gold prices slipped in early trade on Thursday after U.S. President Donald Trump dialled back trade tensions with Europe, easing some of the geopolitical risks that had recently pushed bullion to record highs.
Bullion fell as much as 1.1%, retreating from an all-time high above $4,888 per ounce hit on Wednesday. The pullback came after Trump withdrew his threat to impose tariffs on European nations and said a “framework of a future deal” over Greenland had been agreed following a meeting with NATO Secretary-General Mark Rutte. While details of the framework were not disclosed, the comments helped calm markets.
As geopolitical stress eased, the U.S. dollar and global equities recovered part of their recent losses. The Bloomberg Dollar Spot Index edged higher, reducing the appeal of gold, which typically benefits when the dollar weakens and uncertainty rises.
Despite today’s decline, gold remains firmly in a long-term uptrend. Prices are still up more than 11% so far in 2026, following a 64% surge last year, driven by geopolitical uncertainty, concerns over the global monetary order, and renewed criticism of the Federal Reserve, which has weighed on confidence in the dollar.
Goldman Sachs remains bullish
Adding a contrasting long-term view, Goldman Sachs has raised its end-2026 gold price forecast to $5,400 per ounce from $4,900 earlier. The brokerage cited continued diversification into gold by private investors and emerging market central banks as key drivers.
Goldman Sachs expects private-sector buyers, who use gold to hedge global policy risks, to hold on to their positions through 2026. It also forecasts central bank purchases to average around 60 tonnes next year, supported by ongoing reserve diversification. In addition, the firm expects Western ETF holdings to rise as the Federal Reserve is likely to cut interest rates by 50 basis points in 2026.
However, the brokerage cautioned that a sharp reduction in perceived global monetary-policy risks could pose a downside to gold prices if it triggers liquidation of macro hedges.
In the near term, gold’s decline appears driven by easing geopolitical tensions and a firmer dollar, even as longer-term structural factors continue to support the precious metal’s broader bullish outlook.
