On the morning of 22/1, the global spot gold price fell by 46 USD, settling at 4,786 USD per ounce. Previously, the price had hit a record 4,888 USD during the 21/1 session, driven by investor safe-haven demand amid escalating US-Europe tensions.

However, the market cooled down this morning after US President Donald Trump announced that he and NATO Secretary General Mark Rutte had reached a satisfactory framework for an agreement on Greenland. Consequently, he withdrew the tariff warnings against Europe issued last week.

Global gold prices reversed course and fell on the morning of 22/1. Chart: Kitco

The US stock market also brightened on this news. The S&P 500 index closed up 1,1% at 6,875 points. The DJIA rose 1,2%, equivalent to 588 points.

"The US withdrawal of tariff warnings boosted Wall Street, which somewhat pressured precious metals. Despite this, it is merely a news-driven event and cannot reverse gold's upward trend", stated Bob Haberkorn, a market strategist at RJO Futures.

Gold is considered a store of value during times of economic and political volatility. The price of the precious metal increased by 64% last year and 11% this year.

On 21/1, the US Supreme Court heard arguments in the lawsuit regarding President Trump's desire to dismiss Federal Reserve Board of Governors member Lisa Cook. The justices expressed skepticism about Trump's authority to do so. The case drew attention due to its implications for the Fed's operational independence.

Next week, the Fed will hold a policy meeting. The agency is expected to maintain interest rates this quarter, potentially extending until Chairman Jerome Powell's term ends in May. Gold tends to perform well in a low-interest-rate environment.

Global silver prices also declined this morning, currently at 90,9 USD per ounce. During the session, the price had peaked at 95,87 USD.

"Gold reaching a three-digit price point is feasible given the current momentum. However, the price will not rise directly to that level but will experience occasional corrections", commented Soni Kumari, a commodity analyst at ANZ.

Platinum prices fell 0,1% to 2,460 USD per ounce. Palladium also dropped 2,1%, closing at 1,825 USD.

By Ha Thu (according to Reuters, Kitco)