In a sharp reversal, gold and silver prices declined sharply on Thursday as de-escalating tensions over Greenland diminished safe-haven appeal. The MCX saw gold February futures plunge 0.67% to 1,51,840 rupees per 10 grams, while silver March contracts shed 0.63% to 3,16,500 rupees per kg.
This came after Wednesday’s record highs: gold at 1,58,475 rupees and silver at 3,35,521 rupees. Globally, gold traded near 4,790 dollars per ounce, down from 4,887 dollars earlier this week. Silver remained resilient at 92-93 dollars, buoyed by industrial demand in renewables and tech.
A firmer dollar, propelled by Trump’s WEF remarks disavowing tariffs on Europe and military action on Greenland, weighed on prices. The dollar index climbed to 98.81, raising costs for foreign purchasers.
Market participants noted reduced open interest in futures, signaling profit-booking after the three-day uptrend. Experts view this as a healthy correction, with silver’s fundamentals strong due to EV batteries, solar panels, and AI hardware needs.
Trump’s dialogue with NATO on Greenland paves way for calmer geopolitics. Investors await key US economic releases on inflation and jobs, pivotal for Fed policy.
Consensus holds that the Fed will pause rate changes in January, eyeing two reductions later in 2025. While short-term volatility persists, precious metals’ long-term safe-haven and industrial roles ensure sustained interest amid economic headwinds.
