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Gold, Silver Prices Dip as Trump Eases Trade Tensions Over Greenland

Gold and silver futures on the MCX declined from recent record highs, with gold falling 0.78% and silver dipping 0.62%. The drop is attributed to profit-booking by traders following eased geopolitical tensions after US President Donald Trump softened his stance on potential tariffs against Europe over Greenland. Analysts note the price action indicates long unwinding, though the underlying bullish trend for precious metals remains intact due to factors like industrial demand and safe-haven flows. Market attention now turns to upcoming US inflation data and the Federal Reserve's policy meeting.

Key Points: Gold, Silver Prices Ease After Trump Softens Trade Stance

  • MCX gold futures dip 0.78%
  • Silver futures also decline
  • Dollar strengthens after Trump's remarks
  • Analysts cite profit-booking, long unwinding
  • Focus shifts to upcoming US economic data
2 min read

Gold, silver prices ease after Trump backs off from tariff threats on Europe

Gold and silver futures fall from record highs as Trump backs off EU tariff threats, easing geopolitical fears and strengthening the US dollar.

"The current dip reflects healthy profit-booking amid easing tariff fears, but the broader uptrend remains powerful - Analysts"

New Delhi, Jan 22

Gold futures on the MCX dipped close to 1 per cent on Thursday from record high in the previous session due to profit booking, amid easing geopolitical tensions and strengthening of dollar.

Fears of a US‑EU trade conflict moderated after US President Donald Trump softened his tone on acquisition of Greenland.

MCX gold February futures dipped 0.78 per cent to Rs 1,51,665 per 10 grams. Meanwhile MCX silver March futures dipped 0.62 per cent to Rs 3,16,509 per kg.

Gold rates also dropped in the international futures market, with US gold futures consolidating near $4,790-$4,800 per troy ounce, after registering a fresh record high above $4,887 earlier in the week on COMEX.

The current dip reflects healthy profit-booking amid easing tariff fears, but the broader uptrend remains powerful, analysts said.

Open interest data in the futures market showed a decline in 'OI level', currently at 9870 lots, with price showing upside momentum. According to Aamir Makda, Commodity and Currency Analyst at Choice Broking, this trend indicated a long unwinding by traders, with no addition in long positions.

Meanwhile, COMEX silver traded firm near $92-$93 after recently touching record highs above $95.80.

Analysts said that robust industrial demand in sectors such as solar, EVs, AI, electronics and safe-haven flows amid tightening global supply powers the rally.

US dollar traded in a stable tone after Trump informed that tariffs won't be imposed on European countries over Greenland.

The dollar index rose to 98.81, making gold slightly expensive for overseas buyers.

At the World Economic Forum in Davos, Trump said that force would not be used to acquire the Arctic island, adding that he had "formed the framework of a future deal with respect to Greenland," with NATO Secretary General Mark Rutte.

Investors also focus on upcoming cues from November Personal Consumption Expenditures (PCE) data, the Fed's preferred inflation gauge, and weekly jobless claims, both due later in the day.

Most market participants expect the US Federal Reserve to maintain interest rates unchanged at its January 27-28 meeting. However, two more cuts are expected later in the year.

- IANS

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Reader Comments

P
Priya S
It's amazing how one statement from a foreign leader can move our markets so much. Our MCX prices are so sensitive to global cues. But for middle-class families like mine, even at ₹1.5 lakh per 10g, gold is for long-term security, not daily trading. The wedding season demand will keep it supported.
R
Rohit P
Silver is the real story here. ₹3.16 lakh per kg! The industrial demand from solar and EVs is a structural shift. This isn't just a speculative bubble. In India, with our push for renewables, domestic demand will also rise. Better long-term bet than gold maybe? 🤔
S
Sarah B
Respectfully, the article focuses heavily on US triggers, but what about local factors? The strength of the rupee, RBI's gold reserves policy, and domestic inflation data also play a huge role for Indian investors. Would like more analysis on that front.
K
Karthik V
Trump backing off on tariffs is a relief for global trade, but let's be honest, the volatility isn't over. He changes his mind every other day! This "dip" is just a pause. Smart money is still buying on these small declines. Geopolitical tensions haven't vanished.
M
Meera T
My mother was just saying yesterday that she regrets not buying more gold last year. At these prices, it's becoming out of reach for many households doing traditional savings. Maybe digital gold or SGBs are the way forward for the younger generation.

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