Gold and silver ETFs plunge
Gold and silver exchange traded funds (ETFs) sharply plunged in trade on January 22 as precious metals declined amid easing tariff concerns after US President Donald Trump withdrew a threat to impose tariffs on several nations for their stance on Greenland.
The ETFs are mirroring the fall in the gold and silver prices which saw a record rally earlier.
Here’s what Trump said:
Trump said that he had reached the outlines of a deal with NATO on the island’s future. “Based upon this understanding, I will not be imposing the tariffs that were scheduled to go into effect on February 1st,” Trump wrote on Truth Social after a meeting with NATO Secretary General Mark Rutte in Davos. He did not give details of the deal.
Additionally, he also said that US will not use military force to seize Greenland. “I won’t do that,” Trump said. “Okay? 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,” he added.
Earlier, gold and silver prices had sharply shot up earlier after Trump threatened to use military force to acquire Greenland, triggering tensions between US and EU nations. The tariff threats further fuelled the geopolitical tensions, and thereby safe-haven assets like gold and silver due to a rise in risk-off sentiment.
Silver ETFs:
Tata Silver ETF dropped 21 percent to trade at Rs 26.41 apiece. This comes after the ETF saw a record rally to fresh lifetime highs in the previous session. Groww Silver ETF, 360 One Silver ETF and Axis Silver ETF meanwhile declined around 16 percent.
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Kotak Silver ETF, Mirae Asset Silver ETF, Aditya Birla Sin Life Silver ETF and few others fell nearly 15 percent each, while Nippon Silver ETF (Silverbees), DSP Silver ETF, HDFC Silver ETF, ICICI Prudential Silver ETF, Bandhan Silver ETF fell around 14 percent each.
Gold ETFs:
Birla Sun Life Gold ETF dropped around 12 percent to trade at Rs 130.42 apiece, while Axis Gold ETF, Tata Gold ETF and Bandhan Gold ETF fell around 11 percent each.
DSP Gold ETF, HDFC Gold ETF, Nippon India Gold ETF (Goldbees), LIC MF Gold ETF and others fell more than 9 percent each after hitting fresh lifetime highs in the previous session.
Hindustan Zinc share price:
Hindustan Zinc shares crashed more than 6 percent to trade at Rs 653.1 apiece. This comes as the company is the largest producer of silver in India, and produces refined silver with a minimum 99.9 percent purity.
What lies ahead?
“Reversal of comments by the U.S. President was one factor that eased geopolitical tensions, and so we see a retracement in prices,” Reuters quoted ANZ commodity strategist Soni Kumari as saying. “We still prefer gold as it has central bank backing while it also remains on firmer ground as compared to other industrially-exposed precious metals as geopolitical tensions still persist,” she added.
Goldman Sachs has raised its gold price forecast for December 2026 to $5,400 from its previous estimate of $4,900/oz. “We assume private sector diversification buyers, whose purchases hedge global policy risks and have driven the upside surprise to our price forecast, don’t liquidate their gold holdings in 2026, effectively lifting the starting point of our price forecast,” the brokerage said in a note dated Wednesday.
Goldman Sachs expects Western ETF holdings to rise as the U.S. Federal Reserve is likely to cut its rate by 50 basis points in 2026.
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(This is a developing story. Come back later for more updates).(With inputs from Reuters).Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.