Gold and silver exchange-traded funds experienced dramatic declines on January 22, with some ETFs plunging as much as 21% following significant geopolitical developments. The sharp fall came after Trump withdrew threats to impose tariffs on several nations over their stance on Greenland, marking a reversal from earlier tensions that had driven precious metals to record highs.

Trump's Policy Reversal

Trump announced he had reached preliminary agreement outlines with NATO regarding Greenland's future during a meeting with NATO Secretary General Mark Rutte in Davos. Writing on Truth Social, he stated: "Based upon this understanding, I will not be imposing the tariffs that were scheduled to go into effect on February 1st." However, he did not provide specific details about the agreement.

Significantly, Trump also ruled out using military force to acquire Greenland, stating: "I won't do that. Now everyone's saying 'oh, good' that's probably the biggest statement I made because people thought I would use force. I don't have to use force, I don't want to use force, I won't use force."

Silver ETF Performance

Silver ETFs bore the brunt of the sell-off, with several funds experiencing double-digit declines. The performance breakdown shows the extent of the market reaction:

Additional silver ETFs also posted significant losses, with Kotak Silver ETF, Mirae Asset Silver ETF, and Aditya Birla Sun Life Silver ETF each declining nearly 15%. Meanwhile, Nippon Silver ETF (Silverbees), DSP Silver ETF, HDFC Silver ETF, ICICI Prudential Silver ETF, and Bandhan Silver ETF fell approximately 14% each.

Gold ETF Declines

Gold ETFs also experienced substantial losses, though generally less severe than their silver counterparts:

Other gold ETFs, including DSP Gold ETF, HDFC Gold ETF, Nippon India Gold ETF (Goldbees), and LIC MF Gold ETF, declined more than 9% each after reaching fresh lifetime highs in the previous trading session.

Market Context

The ETF declines mirror broader movements in gold and silver prices, which had experienced a record rally amid earlier geopolitical tensions. Trump's previous threats to use military force to acquire Greenland had triggered tensions between the US and EU nations, while tariff threats further fueled geopolitical concerns. This environment had increased demand for safe-haven assets like gold and silver due to rising risk-off sentiment among investors.

The reversal in precious metals prices reflects how quickly market sentiment can shift based on geopolitical developments, particularly when involving major global powers and trade relationships.

Gold prices experienced a sharp correction on Thursday, falling nearly ₹3,000 after hitting successive record highs earlier in the week, as investors booked profits amid easing geopolitical concerns. The precious metal's decline coincided with reduced safe haven demand following diplomatic developments regarding Greenland.

MCX Performance Shows Divergent Trends

The domestic commodity market witnessed contrasting movements in precious metals on Thursday:

Geopolitical Developments Drive Market Sentiment

The correction followed comments by Trump indicating that tariffs announced on European countries opposing a US takeover of Greenland would not be implemented. Trump stated he had reached a "concept of a deal" after meeting NATO Secretary General Mark Rutte. The arrangement involves cooperation on Arctic security, mineral rights, and participation in the Golden Dome initiative, with the framework meant to last indefinitely.

International Market Mirrors Domestic Trends

Global precious metals markets also retreated from record levels as easing geopolitical tensions strengthened the US dollar. Gold slipped up to 1.0% after three consecutive sessions of gains that pushed prices to a fresh all-time high above $4,888 per ounce. Spot silver eased 0.9% to $92.38 per ounce, retreating from its recent record peak of $95.87 hit on Tuesday.

Gold has demonstrated remarkable performance, surging 64% in 2025 and gaining 11% so far in 2026, reflecting its role as a safe store of value during economic and political instability.

Trading Outlook and Technical Levels

Market expert Manoj Kumar Jain of Prthivi Finmart expects gold and silver prices to remain volatile amid fluctuations in the dollar index, ahead of US jobless claims data and ongoing geopolitical tensions.

International Support and Resistance Levels:

MCX Support and Resistance Levels:

Physical Gold Rates Across Major Cities

Physical gold prices varied across major Indian cities on Thursday:

Market experts recommend staying away from taking fresh positions in both precious metals and waiting for greater market stability given the current volatile environment.