While Donald Trump hailed a “very productive meeting” on Greenland with the NATO Secretary General, gold and silver prices experienced some turbulence. To what extent?
Gold and silver waver after Donald Trump’s announcements on Greenland
On Wednesday in Davos, Donald Trump was eagerly awaited, after blowing hot and cold on Greenland.
We revisited the topic following the drop in cryptocurrencies and stocks, while the U.S. president promised new tariffs on several European Union countries, including an additional 10% starting February 1.
Ultimately, Donald Trump chose to hold off, following a “very productive meeting” with Mark Rutte, the NATO Secretary General. Specifically, the meeting focused on an agreement regarding Greenland and the deployment of the famous U.S. Golden Dome, a missile defense system:
This solution, if it comes to fruition, will be highly beneficial for the United States and all NATO member countries. In light of this agreement, I am waiving the tariffs that were set to take effect on February 1. Further discussions are underway regarding the Golden Dome and its connection to Greenland. More information will be provided as the discussions progress. Vice President J.D. Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and others, as needed, will be in charge of the negotiations and will report directly to me.
While gold hit an all-time high (ATH) of nearly $4,900 on Wednesday, the famous precious metal quickly corrected following this announcement. As a result, the spot index shows the largest hourly red candle of the year, with a 1.42% decline:
Gold price (hourly data)
On a daily basis, gold and silver closed the day up 1.45% and down 1.54%, respectively. Nevertheless, gold also fell 1.15% from its session high, which marked an all-time high (ATH).
Of course, this volatility is nothing compared to what one might encounter in the cryptocurrency ecosystem, but it is still worth noting for assets as widely traded as gold and silver. Moreover, CME data shows that gold futures set an annual high in terms of volume, with 492,565 contracts, each corresponding to 100 ounces:
Volumes and open interest in gold futures
Meanwhile, silver futures saw their third-busiest day of the year, with a total of 232,722 contracts, each equivalent to 5,000 ounces.
Meanwhile, the Dow Jones, the S&P 500, and the Nasdaq closed up 1.21%, 1.16%, and 1.18%, respectively, while Bitcoin (BTC) showed little reaction, rising 0.63% over 24 hours to a price of $89,950.
