Silver prices slip over 2% on MCX, ETFs slide 10–14% after safe-haven demand fades

Silver prices fell sharply on Thursday (January 22), with MCX silver down more than 2% and silver ETFs sliding 10–14%, as investors cut safe-haven positions after geopolitical tensions eased and the US dollar strengthened.

In international markets, spot silver traded near $92.27 an ounce, after hitting a record high of $95.87 earlier this week. The metal retreated as risk appetite returned and traders booked profits following a strong run-up.

What drove silver lower

Markets moved away from defensive bets after US President Donald Trump stepped back from fresh tariff threats and ruled out using force over Greenland, reducing immediate geopolitical uncertainty.

ANZ commodity strategist Soni Kumari said Trump’s reversal helped ease geopolitical tensions, leading to a retracement in precious metal prices.

The stronger dollar also pressured silver, since a firmer greenback makes dollar-denominated metals more expensive for overseas buyers.

Investors watch US inflation data for cues

Traders now look to US Personal Consumption Expenditures (PCE) inflation data and weekly jobless claims due later in the day for signals on the Federal Reserve’s next steps. Markets broadly expect the Fed to keep rates steady in January, even as investors track evolving expectations around rate cuts later this year.

Silver, which often reacts more sharply than gold during shifts in risk sentiment, extended its decline as investors rotated into equities and reduced exposure to precious metals.

Volatility likely to stay high

Despite the day’s fall, market participants said silver could remain volatile as traders continue to track currency moves, global risk sentiment, and any fresh geopolitical triggers that may revive demand for safe-haven assets.

-With Reuters inputs