Gold slips from all-time high: What led to today’s pullback

Gold prices eased on Thursday (January 22) after a sharp safe-haven rally earlier this week, as global markets turned less risk-averse and the US dollar strengthened, prompting some profit-taking.

In international markets, spot gold dropped by about $100 an ounce to around $4,790 an ounce, after climbing to a record peak near $4,887 an ounce. The pullback came alongside a rebound in equities and a decline in market volatility.

What is pressuring gold today?

Investors trimmed defensive bets after US President Donald Trump softened his stance on tariffs and ruled out using force over Greenland, easing fears of a direct confrontation with NATO allies.

Pepperstone analyst Chris Weston said the market has “largely removed the tail risk of a US confrontation with its NATO partners,” which reduced demand for traditional safe-haven assets such as gold.

India: gold surged to near ₹1.60 lakh per 10 grams on Wednesday

In the domestic market, gold had posted a sharp jump a day earlier. In Delhi, 99.9% purity gold surged ₹6,500 to ₹1.59lakh per 10 grams (inclusive of taxes), according to the All India Sarafa Association. Silver also hit all-time high at ₹3.34 lakh per kg.

Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said gold and silver rallied due to “persistent safe-haven demand and strong inflow into gold- and silver-backed exchange-traded funds.”

Gandhi added that domestic prices traded at a noticeable premium to global markets due to tight supply conditions, robust investment demand, and a weaker rupee, keeping local bullion elevated versus international benchmarks.

Geopolitics and macro uncertainty still underpin the trend

Market experts said geopolitical tensions had remained a major driver for gold’s strong momentum this week.

Renisha Chainani, Head – Research at Augmont, said investors were tracking Europe’s response to US tariff signals and developments from Davos, adding that the situation has reinforced safe-haven buying.

Investor participation rises through ETFs as prices hit new peaks

Saurabh Jain, Co-founder and CEO at Stable Money, said record gold levels have led to a rise in participation via regulated products, with investors increasing allocations through lump-sum buys and SIPs in gold ETFs.

He also noted that some investors are adding silver ETFs for broader precious-metals exposure.

Jain said gold ETFs offer “a reliable and transparent way to participate in gold,” especially as investors shift toward regulated options.

Rupee weakness adds to domestic price momentum

Sameer Karyatt, Executive Director and Head of Trading at DBS Bank India, said global uncertainties had led to a risk-off mood, lifting precious metals and supporting strong offshore hedging in USD/INR. He added that the current macro environment could keep depreciation pressure on the rupee, which tends to push domestic gold prices higher.

-With agencies inputs