The price of gold, which had reached a historic high of around $4,900 per ounce in the previous trading session, remained largely stable in the Asian market on Thursday.
This was mainly due to the U.S. President backing down from his earlier strong warnings regarding tensions over Greenland and imposing tariffs on European countries. This reduced the safe-haven demand from investors.
In the past three trading days, gold had risen by more than 6% due to global political tensions, nearing the key level of $5,000. However, that momentum has now slowed down slightly.
At the World Economic Forum in Davos, the U.S. President announced that:
He would not use force in the Greenland issue.
He did not plan to impose tariffs on European imports.
Furthermore, a slight increase in the value of the US dollar also contributed to the slight decrease in the price of gold.
