What is the story about?
Gold prices remained stable in the Indian market on Thursday (January 22), supported by recent safe-haven buying, even as gold exchange-traded funds (ETFs) saw a sharp correction after bullion hit lifetime highs in the previous session.
In Mumbai, 24-carat gold traded at ₹1.56 lakh per 10 grams, while 22-carat gold stood at ₹1.43 lakh per 10 grams, excluding GST and making charges.
Gold ETFs fall sharply after hitting record highs
Gold ETFs witnessed heavy selling as investors cut exposure following a rapid run-up in prices.
The Birla Sun Life Gold ETF declined about 12% to Rs 130.42, while Axis Gold ETF, Tata Gold ETF and Bandhan Gold ETF fell around 11% each.
Other funds such as DSP Gold ETF, HDFC Gold ETF, Nippon India Gold ETF (Goldbees) and LIC MF Gold ETF dropped over 9% each, after rising to fresh lifetime highs in the previous session. Some market trackers also pointed to steeper drawdowns in select counters, with a few ETFs plunging as much as 21%.
What triggered the correction
The sell-off followed a shift in global risk sentiment after US President Donald Trump stepped back from threats to impose new tariffs linked to Greenland and ruled out using military force to acquire the territory.
Trump said he reached preliminary agreement outlines with NATO during a meeting with NATO Secretary General Mark Rutte in Davos and announced he would not impose tariffs that were expected to take effect from February 1.
The remarks eased immediate geopolitical concerns that had earlier supported strong demand for safe-haven assets such as
gold and silver.
Why domestic gold still looks supported
Traders said India’s physical gold prices stayed firm due to the combination of earlier safe-haven flows, currency sensitivity and continued interest in precious metals as a hedge, even as financial instruments such as ETFs saw sharper profit-taking after the recent surge.
Market participants expect volatility to remain high in the near term, with investors tracking global political cues, dollar movement and domestic demand trends.
In Mumbai, 24-carat gold traded at ₹1.56 lakh per 10 grams, while 22-carat gold stood at ₹1.43 lakh per 10 grams, excluding GST and making charges.
Gold ETFs fall sharply after hitting record highs
Gold ETFs witnessed heavy selling as investors cut exposure following a rapid run-up in prices.
The Birla Sun Life Gold ETF declined about 12% to Rs 130.42, while Axis Gold ETF, Tata Gold ETF and Bandhan Gold ETF fell around 11% each.
Other funds such as DSP Gold ETF, HDFC Gold ETF, Nippon India Gold ETF (Goldbees) and LIC MF Gold ETF dropped over 9% each, after rising to fresh lifetime highs in the previous session. Some market trackers also pointed to steeper drawdowns in select counters, with a few ETFs plunging as much as 21%.
What triggered the correction
The sell-off followed a shift in global risk sentiment after US President Donald Trump stepped back from threats to impose new tariffs linked to Greenland and ruled out using military force to acquire the territory.
Trump said he reached preliminary agreement outlines with NATO during a meeting with NATO Secretary General Mark Rutte in Davos and announced he would not impose tariffs that were expected to take effect from February 1.
The remarks eased immediate geopolitical concerns that had earlier supported strong demand for safe-haven assets such as
Why domestic gold still looks supported
Traders said India’s physical gold prices stayed firm due to the combination of earlier safe-haven flows, currency sensitivity and continued interest in precious metals as a hedge, even as financial instruments such as ETFs saw sharper profit-taking after the recent surge.
Market participants expect volatility to remain high in the near term, with investors tracking global political cues, dollar movement and domestic demand trends.
