Insights 
VT 
Key points
- Gold pulled back from record highs, easing toward $4,780/oz after a partial cooling in geopolitical tensions.
- US President Donald Trump softened earlier tariff threats against Europe over Greenland and ruled out the use of force, reducing immediate safe-haven demand.
- Profit-taking emerged after gold’s sharp rally earlier in the week, with traders paring defensive positions.
Gold (XAUUSD) slipped to 4801.59, down 0.57% on the session, reflecting short-term bearish momentum after failing to sustain above the 4888.50 resistance.
The pullback followed a softening in global risk after US President Donald Trump backed away from earlier tariff threats against Europe, which were tied to Greenland.
Trump said negotiations were nearing a resolution and explicitly ruled out the use of force, easing fears of military escalation and reducing the urgency of seeking safe havens.
That shift prompted profit-taking after gold’s sharp run higher earlier in the week.
Geopolitics Still Lingers in the Background
While immediate tensions cooled, uncertainty has not fully dissipated. European lawmakers have paused approval of the EU–US trade agreement reached in July, keeping trade risk on the radar and preventing a deeper unwind in defensive positioning.
At the same time, a sharp selloff in Japanese government bonds, driven by election-linked tax-cut pledges, has raised fresh fiscal concerns.
That move has helped sustain a baseline level of haven demand, limiting downside follow-through in bullion despite the easing of headline risk elsewhere.
Focus Shifts to US Inflation Data
Attention now turns to the delayed US PCE inflation report, due later today.
As the Federal Reserve’s preferred inflation gauge, the data could shape near-term expectations around the policy path and real yields, both key drivers for gold.
A softer print may stabilise prices after the recent pullback, while any upside surprise could reinforce the current consolidation as rate-cut expectations are reassessed.
Technical Analysis
The drop towards 4756.01 marked a sharp correction, though a brief recovery attempt followed. However, price remains capped below the MA20 and MA30, indicating lingering downside pressure.
Volume has picked up during the recent dip, suggesting increased selling interest.
Unless bulls can reclaim the 4820–4840 zone quickly, gold could remain vulnerable to further declines, especially if macro sentiment tilts risk-on or yields rise.
The near-term structure remains fragile, with support seen around 4750, while upside attempts face resistance near 4850.
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