FX.co ★ Gold Pares Losses

Gold prices remained steady at around $4,830 per ounce on Thursday, recovering from earlier declines to stay near record highs as geopolitical risks continued to weigh on market sentiment. President Donald Trump pulled back from his earlier tariff threat against Europe linked to Greenland, stating that a resolution was nearing concerning the dispute over the Arctic island. He also dismissed the possibility of utilizing military action, alleviating fears of potential US military involvement. Nevertheless, uncertainty persisted as Denmark reiterated its refusal to negotiate the transfer of Greenland to the US, and European lawmakers suspended the ratification of the EU–US trade agreement made in July. Concurrently, a significant selloff in Japanese government bonds posed spillover risks, maintaining some degree of safe-haven demand. As investors anticipate the delayed US Personal Consumption Expenditures (PCE) inflation report later today, they seek insights regarding the Federal Reserve's forthcoming interest rate strategy.