Mumbai, January 22 – Gold and silver prices tumbled on Thursday following signs of easing geopolitical tensions linked to Greenland, pulling both precious metals back from their recent record highs. Investors dialed back their demand for safe-haven assets amid reduced fears of tariffs on Europe.
The strengthening US dollar added further pressure on prices, making gold and silver less attractive for international buyers. After three straight sessions of gains, gold futures on the Multi Commodity Exchange (MCX) fell nearly 1%, while silver slipped from its all-time peak.
MCX data showed February gold contracts trading at 1,51,840 rupees per 10 grams, down 1,022 rupees or 0.67%. March silver futures dropped 1,992 rupees or 0.63% to 3,16,500 rupees per kilogram by midday.
Internationally, spot gold hovered around 4,790-4,800 dollars per troy ounce in US markets, retreating from this week’s high of 4,887 dollars. Silver held firm globally at 92-93 dollars per ounce, supported by demand from solar energy, electric vehicles, AI, and electronics sectors.
Experts attribute the dip to natural profit-taking after the recent rally. Futures data indicates fewer open positions, suggesting investors are booking gains rather than piling in anew. President Trump’s clarification at the World Economic Forum that no tariffs would target Europe over Greenland issues boosted the dollar index to 98.81.
Trump emphasized no force would be used to acquire Greenland, outlining future talks with NATO leaders. Eyes now turn to upcoming US inflation and unemployment data, which could sway markets further.
Most analysts expect the Federal Reserve to hold rates steady at its late-January meeting, with two cuts anticipated by year-end. Long-term, gold’s bullish outlook remains intact despite the pullback, bolstered by ongoing global uncertainties.