Key Points
- Gold prices steadied on Friday after hitting a series of record highs.
- The pause came after President Trump backed away from his threat to impose tariffs on Greenland.
- The precious metal is up nearly 11% this year on geopolitical tensions and a weaker dollar.
- Goldman Sachs has raised its year-end gold price forecast to $5,400 an ounce.
Gold prices steadied on Friday, taking a breather after a blistering rally that had pushed the precious metal to a series of record highs. The pause came after President Trump backed away from his threat to impose new tariffs on European nations, agreeing to a “framework for a future deal” on Greenland.
The precious metal was trading near $4,825 an ounce, just shy of hitting a new all-time high for a fourth day in a row. Gold has been on a tear this year, up nearly 11%, as investors have flocked to it as a haven amid rising geopolitical tensions.
The standoff over Greenland was the latest in a series of events that have rattled markets and boosted gold’s appeal. Trump’s brinkmanship had sparked a diplomatic crisis with European allies and sent investors running for cover.
While the immediate crisis seems to have been averted, the underlying tensions remain. The Trump administration’s renewed attacks on the Federal Reserve, including an effort to fire a Fed governor, have also eroded confidence in the U.S. dollar and made precious metals more attractive.
Goldman Sachs is among the big banks that are still very bullish on gold. They recently raised their year-end price forecast to $5,400 an ounce, citing strong demand from both private investors and central banks.
Silver also had a volatile day, but it’s still up massively over the past year. The white metal has tripled in value, driven by a historic short squeeze and a wave of retail buying.
For now, the market is in a wait-and-see mode. But with so much uncertainty in the world, it seems likely that gold and silver will remain in high demand.
