Silver Slips on January 22: Investors Step Back from Safe-Haven Assets

On January 22, 2026, silver prices dropped sharply with MCX silver falling over 2% and silver ETFs declining between 10–14%, as investors pared back safe-haven positions following easing geopolitical tensions and a stronger US dollar.

In international markets, spot silver hovered around $92.27 an ounce, after touching a record peak of $95.87 earlier this week. The retreat came as risk appetite returned, prompting traders to lock in profits after a recent rally.

Key Factors Behind the Decline

Markets shifted away from defensive trades after US President Donald Trump softened rhetoric on new tariffs and ruled out military action over Greenland, easing immediate geopolitical uncertainty.

A firmer US dollar also weighed on silver, as a stronger greenback raises the cost of dollar-denominated metals for overseas buyers.

Investors Eye Upcoming US Data

Traders are now focused on US Personal Consumption Expenditures (PCE) inflation data and weekly jobless claims, both due later in the day, for signals on the Federal Reserve’s next moves. While most expect the Fed to hold rates steady in January, markets remain attentive to changing expectations around potential rate cuts later in the year.

Silver, known for its sensitivity to shifts in risk sentiment, extended its losses as investors rotated into equities and reduced exposure to precious metals.

Also Read: Gold Prices Fell from Record High on January 22: Spot Gold Slipped ~100 Ounces 

Volatility Could Persist

Despite Thursday’s decline, analysts cautioned that silver is likely to remain volatile. Market participants will continue monitoring currency movements, global risk sentiment, and any new geopolitical developments that could reignite demand for safe-haven assets.

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