During the early Asian trading session on January 22, international gold and silver markets experienced a pullback, with gold once again falling below the $4,800 per ounce threshold.
Around 11:00 AM on January 22, 2026, spot gold in London was quoted at $4,785 per ounce, down 1% for the day; concurrently, spot silver in London also declined, quoted at $92 per ounce, marking a daily drop of 1.19%. New York gold and silver futures also moved lower.
Gold prices witnessed significant volatility this week. The London gold price had surged to a record high of $4,890 per ounce on January 21, but subsequently faced a sharp retreat during the US trading session, falling back into the $4,800 range.
As of around 10:00 AM on January 22, spot gold in London was quoted at $4,792 per ounce, while New York gold futures were at $4,801 per ounce, both hovering near the crucial $4,800 level.
Market analysis suggests the immediate trigger for this sharp decline in gold prices was a significant easing of geopolitical tensions surrounding Greenland.
On January 21 local time, US President Donald Trump delivered a speech at the World Economic Forum annual meeting in Davos, Switzerland, stating he would not use military force to "take the island." He claimed it was "unnecessary," he was "unwilling," and he "would not" use force to seize the Danish autonomous territory, adding that the US was seeking "immediate" negotiations on "acquiring" Greenland.
Later that day, following a meeting with NATO Secretary General Mark Rutte, Trump posted on social media that he and Rutte had "established a framework for a future agreement regarding Greenland and the entire Arctic region," and therefore he would not implement tariff increases on eight European countries originally scheduled to take effect on February 1.
Trump described the agreement as "indefinite," calling it a deal satisfactory to all parties and consistent with his demands for control over Greenland.
Previously, market expectations had widely anticipated a new round of trade conflict between the US and Europe stemming from the Greenland dispute, which drove significant capital inflows into traditional safe-haven assets like gold and silver.
Since the beginning of 2026, global precious metal markets have exhibited high volatility. Year-to-date, gold and silver prices have maintained significant gains. Gold has risen over 10% since the start of the year, while silver has performed even more strongly, with London silver and New York silver futures registering cumulative gains of 28.73% and 30.08% respectively, reflecting strong safe-haven demand in the initial stage of the year.
Analysts Qu Rui and Bai Xue from the Research and Development Department of Dongfang Jincheng pointed out that last Saturday (January 17), US President Trump announced tariffs would be imposed on eight European countries, including Denmark, starting February 1, pending an agreement to acquire Greenland. Subsequently, on Monday (January 19), the European Union was preparing to impose retaliatory tariffs on $108 billion worth of US goods in response to Trump's threat.
The analysts further noted, "This trade conflict triggered by the Greenland dispute could significantly impact both economies. Recent US hegemonic measures towards Venezuela and Greenland indicate a further expansion of geopolitical risks and heightened uncertainty in the global trade environment, rapidly升温 market risk aversion and pushing gold prices to new highs."
Simultaneously, Qu Rui and Bai Xue analyzed that four main factors will influence international gold prices this year:
First, US fiscal risks. Current US debt risks continue to rise, primarily because the economic and fiscal policies promoted by the Trump administration will increase the federal government's debt burden. Additionally, the previous US government shutdown caused certain losses, deepening market skepticism about US fiscal sustainability. Coupled with increased volatility in US Treasury yields, the attractiveness of dollar assets is marginally declining, driving capital towards assets with strong safe-haven attributes like gold, forming the main support for rising gold prices.
Second, global central banks' gold allocation intentions. The global macroeconomic and structural order continues to shift next year, particularly due to the policies and variability of the Trump administration, leading to enhanced economic uncertainty. Central banks, based on strategic security and asset allocation needs, will strengthen their gold reserve allocations.
Third, the US remains in an interest rate cutting cycle next year. The ongoing cooling of the US labor market, along with controllable inflation rebound risks, supports the Federal Reserve's continuation of rate cuts next year, sustaining market expectations for monetary easing.
Fourth, escalating global geopolitical risks increase market safe-haven demand. Trump's military involvement in and control of Venezuelan oil at the beginning of 2026 highlights his disruption of the international order and suggests more intense competition for future resources, indicating that geopolitical risks are likely to remain elevated throughout 2026.
Experts also caution that gold may face short-term correction risks. Lu Zhe, Chief Economist at Soochow Securities, warns that if concerns over tariffs and rising US inflation pressures lead the Federal Reserve to slow its pace of interest rate cuts, it could trigger some volatility in gold prices in the short term.
With gold prices already persistently high, global central banks with long-term reserve needs might slow their pace of gold purchases in the short term. Lu Zhe believes this will have a short-term impact on the gold price rally narrative, affecting the pace of its ascent.
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