Gold Rebounds as Goldman Raises Bullish Forecast Amid Cooling Greenland

Gold recovered from an early selloff on Thursday, trading near $4,830 an ounce, as investor nerves calmed following signs of de-escalation in transatlantic tensions and a more optimistic outlook from Goldman Sachs. The bank raised its year-end gold price forecast by $500 to $5,400 an ounce, citing intensifying demand from both central banks and private investors.

The rebound came after U.S. President Donald Trump stepped back from earlier threats of tariffs against European countries, agreeing instead to a “framework for a future deal” on Greenland during talks with North Atlantic Treaty Organization Secretary-General Mark Rutte. The move helped ease fears of a broader diplomatic rift that had unsettled markets and bolstered safe-haven demand for bullion earlier in the week.

Gold’s rally over the past year has been underpinned by recurring geopolitical shocks and growing concerns over the stability of global supply chains. Analysts say recent episodes highlight the increasing “weaponization” of commodities and energy, reinforcing gold’s role as a hedge against geopolitical and policy risk.

Pressure on the U.S. dollar has also supported precious metals. Renewed criticism of the Federal Reserve by the Trump administration has raised concerns about central bank independence, adding to investor unease. Legal scrutiny over attempts to remove a Fed governor has further fueled worries that political interference could rattle financial markets.

According to Goldman analysts, the outlook for gold remains firmly constructive. They argue that lingering uncertainty around global economic policy could prompt further diversification by private investors, while sustained central-bank buying continues to provide a solid floor for prices.

Silver also rebounded after early weakness, climbing above $94 an ounce as strong retail demand and perceptions of supply tightness offset concerns about elevated inventories. Platinum slipped slightly, while palladium edged higher. The Bloomberg Dollar Spot Index was little changed, offering no additional headwind for precious metals.

Overall, while easing geopolitical tensions trimmed some of gold’s immediate momentum, analysts see the broader backdrop of policy uncertainty, strong institutional demand and investor diversification as supportive of higher prices over the medium to long term.