Gold and Silver Slide as Trump Reduces Geopolitical Uncertainty
Gold and silver prices came under sharp selling pressure after U.S. President Donald Trump announced the cancellation of planned tariffs on the European Union and revealed that Washington and Copenhagen are working on a formal framework related to Greenland.
Following the announcement, gold dropped abruptly to around $4,777 per ounce, while silver slid toward the $90.6 level, according to intraday trading data. The move marked a clear reversal from earlier gains and reflected a rapid shift in market sentiment away from traditional safe-haven assets.
Key takeaways
- Gold and silver sold off sharply following Trump’s remarks
- The drop followed the cancellation of EU tariffs and progress on a Greenland framework
- Reduced geopolitical and trade uncertainty weakened safe-haven demand
- Investors appeared to rotate toward risk assets amid improving sentiment
The sell-off suggests investors quickly repriced geopolitical risk after Trump signaled a softer trade stance toward the European Union and progress on a structured approach to Greenland.
Precious metals typically benefit from uncertainty and trade friction, and the easing of both factors appeared to reduce defensive positioning.
Risk sentiment shifts away from safe havens
From a technical perspective, both metals showed signs of short-term momentum deterioration.
Gold’s relative strength index moved closer to oversold territory, while momentum indicators such as the moving average convergence divergence turned decisively negative.
Silver followed a similar pattern, with selling accelerating after key intraday support levels failed.
Market participants also appeared to interpret the Greenland framework as a move toward strategic clarity rather than confrontation. Trump has repeatedly described Greenland as vital to U.S. national security due to its rare earth resources, but the emphasis on a negotiated framework reduced fears of sudden geopolitical escalation.
The pullback in gold and silver comes amid broader optimism in risk assets, reinforced by Trump’s recent comments that U.S. stocks are poised to double and that economic growth remains the primary tool for managing national debt. As confidence in growth-oriented policies improves, capital often rotates away from defensive assets such as precious metals and into equities.
For now, the sharp reaction in gold and silver underscores how sensitive commodity markets remain to shifts in trade policy and geopolitical signaling. Further price direction will likely depend on additional details surrounding EU trade relations, developments tied to Greenland, and the broader trajectory of global risk appetite in the days ahead.
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Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
