As 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 falter after Donald Trump’s announcements on Greenland
Donald Trump was eagerly awaited in Davos on Wednesday after blowing hot and cold on Greenland.
We returned to the subject following the fall in cryptocurrencies and stocks, while the US president promised new tariffs on several European Union countries, including an additional 10% from February 1.
In the end, Donald Trump chose to delay, following a “very productive meeting” with Mark Rutte, the Secretary General of NATO. In this case, the meeting focused on an agreement concerning Greenland and the implementation of the famous US Golden Dome, a missile defense system:
This solution, if successful, will be very beneficial to the United States and all NATO member countries. In light of this agreement, I am waiving the tariffs that were to take effect on February 1. Further discussions are ongoing regarding the Golden Dome and its connection to Greenland. More information will be provided as discussions progress. Vice President J.D. Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff, and others, as needed, will be responsible for 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 decline of 1.42%:
On a daily basis, gold and silver closed the day up 1.45% and down 1.54% respectively. However, gold also fell 1.15% from its session high, which was an all-time high.
Of course, this volatility is nothing compared to what we see in the cryptocurrency ecosystem, but it is still worth noting for assets as highly capitalized as gold and silver. In fact, CME data shows that gold futures set an annual high in terms of volume, with 492,565 contracts, each corresponding to 100 ounces:
Silver futures, meanwhile, had their third-biggest day of the year, with a total of 232,722 contracts, each equivalent to 5,000 ounces.
At the same time, the Dow Jones, S&P 500, and Nasdaq closed up 1.21%, 1.16%, and 1.18%, respectively, while Bitcoin (BTC) did not react particularly strongly, rising 0.63% over 24 hours to a price of $89,950.
