RAW MATERIALS
* Spot gold fell 0.8% to $4,799.79 an ounce as of 0136 GMT, after hitting a record high of $4,887.82 in the previous session. * U.S. gold futures for February delivery lost 0.6% to $4,806.60 an ounce.
* Trump on Wednesday abruptly backed away from threats to impose tariffs as leverage to seize Greenland, ruled out the use of force and suggested a deal was in sight to end a dispute over Danish territory that threatened to cause the deepest rift in transatlantic ties in decades.
* The dollar firmed, with 10-year U.S. Treasury yields falling from multi-month highs, while Wall Street indexes also rose on news of Trump’s tariff reversal.
* A stronger dollar makes dollar-priced metals more expensive for foreign buyers.
* Meanwhile, U.S. Supreme Court justices expressed skepticism toward President Trump’s unprecedented bid to fire Federal Reserve Governor Lisa Cook in a case involving the central bank’s independence.
* Traders are awaiting November’s personal consumption expenditure (PCE) data, the Fed’s preferred inflation gauge, and weekly jobless claims data, due later in the day, for further clues about the trajectory of monetary policy. * The US Fed is widely expected to maintain interest rates at its January 27-28 meeting despite Trump’s calls for spending cuts.
* Gold, which does not earn interest, tends to perform well in a low interest rate environment.
* Spot silver fell 0.9% to $92.38 an ounce, after hitting a record high of $95.87 on Tuesday.
* Spot platinum lost 2.7% to $2,415.60 an ounce after hitting a record high of $2,511.80 on Wednesday, while palladium fell 1% to $1,821.50, retreating from a one-week high in the previous session.
DATA/EVENTS (GMT)
1330 US GDP Final 3rd Quarter 1330 Initial US Unemployment January 17
1500 US consumption, adjusted in November
1500 US Core PCE Price Index MM November
1500 US Core PCE Price Index YY Nov
1500 US PCE Price Index MM November
1500 US PCE Price Index YY November
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