Trump Shock Hits Gold Prices: Is This the Right Time to Buy Gold?
Gold prices have witnessed a sudden decline in both domestic and international markets, triggering confusion among investors. After weeks of record-breaking rallies, precious metals are finally cooling down. Market experts attribute this correction largely to former US President Donald Trump’s recent remarks, which eased global uncertainty.
Gold Prices Drop After Trump’s Statement
In today’s trading session, 24-carat gold fell by ₹224 to ₹15,431, while 22-carat gold slipped ₹210 to ₹14,145. This marks a pause after a sharp upward rally that had pushed prices to historic highs.
The decline follows Trump’s softer stance on global issues. His assurance that the US would not use military force regarding Greenland, along with his openness toward future negotiations with Europe, helped calm international markets.
Global Factors Behind the Fall
Trump’s comments boosted US market sentiment during the Davos meet, strengthening the dollar. Since gold usually moves inversely to the dollar, prices came under pressure.
As geopolitical uncertainty reduced temporarily, investors shifted away from safe-haven assets like gold, leading to profit booking.
Silver Sees Panic Selling
Silver prices also came under pressure. Silver ETFs reportedly fell by nearly 20%, driven by panic selling among retail investors.
However, market analyst Justin Khoo clarified that this decline is sentiment-driven and not due to weak fundamentals. Industrial demand for silver remains strong, especially from the renewable energy and electronics sectors.
Will Gold and Silver Prices Rise or Fall?
Market analysts are sharply divided:
Bullish View: Ongoing geopolitical tensions in the Middle East, US-China rivalry, and the Russia-Ukraine war continue to support gold as a safe-haven asset.
Cautious View: Some experts believe current prices are overvalued and may see further corrections in the short term.
Expert Investment Advice
According to Kanchan from Anand Rathi, investors should avoid lump-sum investments at current levels. Instead, adopting a Systematic Investment Plan (SIP) strategy can help average costs and reduce risk.
Experts agree on one point: timing the market is extremely difficult. Gradual buying during dips is considered the safest approach.
FAQs
Is this the right time to buy gold?
Experts suggest buying gold gradually through SIPs rather than investing a large amount at once, especially during price dips.
Why did gold prices fall today?
Gold prices declined after Donald Trump’s comments reduced global uncertainty and strengthened the US dollar.
Will gold prices fall further?
Short-term corrections are possible, but long-term fundamentals for gold remain strong due to geopolitical risks.
Is silver a good investment now?
Despite recent selling pressure, silver has strong industrial demand, making it attractive for long-term investors.
Should investors worry about silver ETF losses?
Analysts say the fall is due to profit booking, not a fundamental weakness in silver.
CONCLUSION
Gold and silver prices may be volatile in the short term, but their long-term outlook remains positive. With global tensions still unresolved, precious metals continue to act as a hedge against uncertainty. Instead of trying to predict market tops and bottoms, experts strongly recommend disciplined investing through SIPs to benefit from future price movements.
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