Gold and silver retreated from peaks on Thursday as global markets reacted to softening geopolitical risks surrounding Greenland and potential EU tariffs. MCX gold for February delivery slipped 1,022 rupees to 1,51,840 per 10 grams (down 0.67%), with silver March at 3,16,500 rupees per kg after a 1,992-rupee drop.
The pullback followed records of 1,58,475 rupees for gold and 3,35,521 for silver on Wednesday. International gold eased to 4,790-4,800 dollars per ounce from 4,887 dollars, while silver traded steadily at 92-93 dollars.
Key drivers included a robust dollar index at 98.81, fueled by US President Trump’s WEF assurance against Greenland-related tariffs or force. This curbed safe-haven buying after recent spikes.
Analysts call it profit-taking, evident in declining futures open interest. Silver’s downside was cushioned by surging demand in green energy, EVs, AI, and consumer electronics—sectors poised for growth.
Trump’s NATO discussions signal diplomatic progress, reducing uncertainty. Traders now focus on US CPI and non-farm payrolls data, which could influence Fed decisions.
The central bank is likely to maintain rates at its January meeting, with cuts projected twice by December. For investors, this dip presents buying opportunities in a market where gold’s upward trajectory endures, driven by inflation hedges and global instability.