Gold Prices Ease After Initial Surge; Trump's Stance & Profit Booking Drive Day's Trade on 22 January 2026

The gold market experienced a day of mixed signals on January 22, 2026, with prices initially topping the significant $4,900 per ounce mark globally, only to ease considerably later in the day. This downturn was largely attributed to a combination of geopolitical developments and market dynamics, bringing a noticeable drop for investors and jewelry shoppers across India. While silver and platinum had seen an extended record-setting rally, they too followed gold's lead in easing from their peaks.

On the domestic front, MCX gold rates reflected this global trend, settling around ₹1.54 Lakh per 10 grams after dropping 0.8%. Similarly, silver also eased by 0.9%, trading close to ₹3.19 Lakh per kilogram. This movement saw the precious metals fall from their recent record peaks, impacting 18, 22, and 24 carat gold prices observed in major Indian cities like Chennai, Mumbai, Delhi, and Kolkata. Adding to the market's complexity, gold and silver ETFs reportedly fell more than physical market prices, a discrepancy investors are advised not to overly worry about.

A key factor influencing the day's easing was the news that former US President Trump had backed off from his tariff threats on Europe. This softened stance on international trade tensions typically reduces the safe-haven appeal of gold, leading to a decline in prices. Alongside this, widespread profit booking by investors, who capitalized on the recent record highs, also contributed significantly to the fall in gold and silver futures. Experts cited this as a major reason for the "big drop" observed.

Looking ahead, the outlook for gold remains a topic of keen interest for Indian investors and jewelry buyers. Despite the day's dip, long-term forecasts remain bullish, with Goldman Sachs expecting gold to touch $5,400 per ounce by year-end 2026. Domestically, some experts even predict gold prices could rise to ₹2 Lakh per 10 grams by the end of 2026, suggesting potential for future appreciation. With Budget 2026 approaching, there are also suggestions from experts to reduce the holding period for gold funds and physical gold to just one year, which could offer more flexibility for investors. Shoppers considering purchases should continue to monitor local daily rates for 22 and 24 carat gold closely, keeping an eye on both short-term market corrections and long-term growth prospects.