Gold prices registered a slight downturn Thursday morning, stepping back from recent record-setting levels reached in the previous trading session. Spot gold was trading down 0.2%, at $4,819.74 per ounce around 09:00 ET (14:00 GMT), after peaking at an unprecedented $4,888.1 per ounce the day before. Concurrently, March U.S. gold futures retreated by 0.2%, settling near $4,820.99 per ounce.
The reduction in gold's value followed the release of encouraging U.S. economic data, which indicated a robust growth environment, weakening the metal's appeal as a risk hedge. The latest weekly report on unemployment claims revealed a smaller-than-anticipated increase in new jobless filings, suggesting steady labor market conditions through January. Specifically, initial unemployment claims climbed by 1,000 to a seasonally adjusted 200,000 for the week ending January 17, below economists’ expectation of 210,000.
Moreover, the U.S. economy's third-quarter gross domestic product growth was revised upward to 4.4% annualized—exceeding the forecasted 4.3% and improving upon the prior quarter’s 3.8% expansion. Notably, market participants are closely monitoring the core Personal Consumption Expenditures (PCE) inflation figure for November, regarded as the Federal Reserve’s preferred inflation gauge. This statistic is viewed as critical in discerning the potential trajectory of U.S. interest rates throughout the year.
Adding to the downward pressure on gold prices, President Donald Trump’s remarks at the World Economic Forum in Davos indicated a de-escalation of the trade conflict regarding Greenland. Trump announced that tariffs on European imports would not be imposed and dismissed the possibility of military action, instead emphasizing an emerging "framework" deal with NATO allies. The agreement is expected to have long-term benefits, particularly in areas related to security and mineral resources.
This diplomatic easing followed a strong rally in gold prices over the past three trading sessions, during which the metal gained over 6%, nearing the psychological $5,000 per ounce threshold. These gains were driven by heightened geopolitical risks stemming from transatlantic disputes and threatened tariffs, which led investors to seek safe-haven assets amid global uncertainties.
The U.S. dollar's modest rebound on Thursday further contributed to the metal’s price softness. Despite the current retreat, Goldman Sachs raised its gold price forecast for December 2026 from $4,900 to $5,400 per ounce. The investment bank cited the materialization and expected persistence of a key upside risk previously identified, reflecting a shift in the demand dynamic.
Goldman strategist Daan Struyven highlighted that private-sector diversification into gold has become more pronounced, with these investments unlikely to unwind in the near term, effectively raising the base assumption for future prices. Historically, central bank acquisitions of gold fueled price appreciation in 2023 and 2024, but prices accelerated in 2025 as competition intensified between central banks and private investors over limited bullion availability.
Two indicators support the broadening of gold demand beyond official sources. First, holdings in Western gold exchange-traded funds (ETFs) have increased by approximately 500 tonnes since early 2025, aligning with levels anticipated following U.S. interest rate cuts and correcting a prior shortfall observed in 2024. Second, new methods for hedging macroeconomic policy risks have emerged, including a rise in physical gold purchases by affluent families and growing interest in investor call options.
Other precious and industrial metals also demonstrated positive momentum. Silver prices lifted by 0.8% to $93.36 per ounce, close to the near-record highs of $95.89 recorded earlier in the week, supported by rising industrial demand. Similarly, platinum increased 0.8% to $2,514.95 per ounce, with UBS upgrading its platinum price outlook, citing strong investment demand amidst tight physical market conditions.
Conversely, copper markets were mixed. Benchmark copper futures on the London Metal Exchange gained nearly 0.5% to $12,693.35 per ton, while U.S. copper futures eased 0.5% to $5.7372 per pound.
This combination of solid economic fundamentals, moderated geopolitical risks, and evolving investor behavior underlines an intricate market environment for metals where prices reflect both macroeconomic realities and shifting demand sources.