Gold and silver prices fell after President Trump canceled EU tariffs

Gold and silver prices retreated from recent record highs on Wednesday and Thursday after U.S. President Donald Trump announced he was canceling planned tariffs on several European countries, easing fears of an escalating transatlantic trade dispute tied to his push for U.S. influence over Greenland.

The pullback followed a sharp rally in precious metals earlier in the week, when Trump’s threats of 10% tariffs (potentially rising to 25%) on imports from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland — set to begin February 1 — drove investors toward safe-haven assets amid heightened geopolitical uncertainty.

Spot gold, which surged to an all-time peak above $4,888 per ounce earlier this week, pared gains and fell to around $4,780–4,805 per ounce by Thursday, down roughly 0.5–1% in recent sessions. Silver saw steeper declines, dropping as much as 3–4% from its record near $95–96 per ounce to trade around $91–93 per ounce.

The de-escalation came after Trump posted on social media that he had reached a “framework of a future deal” on Greenland and Arctic security during discussions with NATO Secretary-General Mark Rutte. He confirmed the tariffs would not be imposed, citing progress in negotiations that could benefit U.S. and NATO interests in the region.

“This removes a major short-term risk premium from the market,” analysts noted, as the tariff threats had revived “sell America” trades and boosted demand for gold and silver as hedges against trade wars, dollar weakness, and broader instability. With the immediate pressure lifted, investors shifted toward riskier assets, contributing to a rebound in global stock markets, including sharp gains on Wall Street, and reduced safe-haven buying.

Despite the correction, precious metals remain strongly supported year-to-date. Gold is up over 70–74% compared to a year ago, while silver has more than doubled in the same period, fueled by ongoing industrial demand, supply constraints, central bank purchases, and persistent geopolitical tensions.

Market participants continue to monitor U.S. economic data, Federal Reserve policy signals, and any further developments in the Greenland talks, which could influence volatility in the coming days.