Gold prices fell after U.S. President Donald Trump stepped back from a threat to impose tariffs on European countries and said a “framework of a future deal” over Greenland had been reached.

Bullion slid as much as 1.1% in early trading, paring losses after a three-day rally that had lifted prices to a record high above $4,888 an ounce on Wednesday. Trump announced the Greenland “framework” in a social media post following a meeting with NATO Secretary-General Mark Rutte, though he provided no further details.

Trump’s brinkmanship over Greenland had triggered a diplomatic standoff with Europe and rattled financial markets, boosting demand for gold as a safe haven. After his remarks on Wednesday, the U.S. dollar and equities recovered some of the losses seen earlier in the week. The Bloomberg Dollar Spot Index, a widely watched measure of the greenback’s strength, rose 0.1%.

Despite the pullback, gold remains in a powerful uptrend. Prices have surged more than 70% over the past year, setting successive record highs, with the rally extending into the opening weeks of 2026. The upheaval in the global geopolitical landscape, coupled with renewed criticism by the Trump administration of the U.S. Federal Reserve, has undermined confidence in the dollar and continued to support demand for precious metals.