Precious Metals ETFs Tumble on January 22
Just as gold and silver were beyond the point of no return, their luster dimmed all of a sudden and, unexpectedly, precious metal ETFs suffered. On January 22, the E-Mini S&P 500, a futures contract tracking the US stock index, moved immediately after President Donald Trump softened his tariff threats related to Greenland, resulting in an overnight easing of geopolitical tensions. The once-strong demand for a safe investment quickly transformed into a reality check for investors. Gold and silver prices, which had recently reached all-time highs due to fear-driven buying, surrendered ground as risk appetite returned to global markets. This, in turn, led to a rapid sell-off in metal-backed ETFs, surprising many traders. The incident is a typical reminder on the Indian stock market: when global news cools, safe-haven rallies can disappear as fast as they are created.
MCX Gold and Silver Update: Prices Dip on January 22, 2026
- MCX Gold (10g) opened lower at ₹1,51,557, compared to the previous close of ₹1,52,862.
- MCX Gold February futures were trading around ₹1,52,057.
- Gold prices remain volatile amid easing geopolitical tensions, though the broader trend stays bullish.
- MCX Silver futures were trading near ₹3,07,977 per kg as of January 22, 2026.
- Silver prices continue to see sharp swings, reflecting heightened market volatility.
Why Gold and Silver Are Falling: Trump’s Greenland Clarity Calms Markets
After US President Donald Trump calmed geopolitical concerns around Greenland, gold and silver prices declined, as a key driver of safe-haven buying was removed. Trump said he had reached the outlines of a deal with NATO on Greenland’s future and added that the tariffs scheduled for February 1 would not be imposed.
He also ruled out the use of military force, a statement that significantly eased global risk sentiment. As fears of trade disruption and military escalation faded, investors began shifting away from defensive assets such as gold and silver. With confidence returning to equity markets, precious metals lost their safe-haven appeal, resulting in a sharp price drop and a sell-off in metal-linked ETFs.
Sharp Sell-Off Hits Gold and Silver ETFs As Safe-Haven Demand Cools
| Category | ETF Name(s) | Price Movement |
|---|---|---|
| Silver ETFs | Tata Silver ETF | Down 21% to ₹26.41 |
| Groww Silver ETF | Down -16% | |
| 360 One Silver ETF | Down -16% | |
| Axis Silver ETF | Down -16% | |
| Kotak Silver ETF | Down -15% | |
| Mirae Asset Silver ETF | Down -15% | |
| Aditya Birla Silver ETF | Down -15% | |
| Nippon Silver ETF (Silverbees) | Down -14% | |
| DSP Silver ETF | Down -14% | |
| HDFC Silver ETF | Down -14% | |
| ICICI Prudential Silver ETF | Down -14% | |
| Bandhan Silver ETF | Down -14% | |
| Gold ETFs | Birla Sun Life Gold ETF | Down -12% to ₹130.42 |
| Axis Gold ETF | Down -11% | |
| Tata Gold ETF | Down -11% | |
| Bandhan Gold ETF | Down -11% | |
| DSP Gold ETF | Down >9% | |
| HDFC Gold ETF | Down >9% | |
| Nippon India Gold ETF (Goldbees) | Down >9% | |
| LIC MF Gold ETF | Down >9% |
Silver Slump Weighs on Hindustan Zinc Stock
Shares of Hindustan Zinc fell by more than 6% to ₹653.10 as silver prices underwent a significant correction following the easing of geopolitical tensions. Since silver is one of the company’s major revenue contributors, the decline in metal prices negatively impacted investor sentiment.
Gold’s Shine May Be Temporarily Dull, but the Long-Term Bull Case Remains Intact
Analysts are of the opinion that the recent decline in gold and silver prices is not a complete market crash but rather a short pause. With geopolitical tensions cooling, prices have pulled back slightly, but the long-term shine has not faded yet. Gold continues to enjoy strong support from central banks and remains a reliable hedge during uncertain times. Adding to the bullish outlook, Goldman Sachs has raised its gold price target for December 2016 to $5,400 per ounce, citing steady private demand and expected US Federal Reserve rate cuts. For patient investors, the glitter may return sooner than expected.
(With Inputs)