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Gold & Silver ETFs Plunge 21% Amidst Easing Geopolitics
23 Jan
Summary
- Silver and gold ETFs experienced a significant price drop.
- Geopolitical tensions eased after US President's statement.
- Experts suggest potential investment opportunity despite volatility.
Silver and gold Exchange Traded Funds (ETFs) experienced a substantial price correction on Thursday, January 22. This sharp fall, with some ETFs dropping nearly 21%, occurred after United States President Donald Trump provided clarification regarding the US stance on Greenland and European tariffs.
The markets had previously seen a rally in safe-haven assets like gold and silver, driven by geopolitical and trade-war concerns. However, President Trump's statements helped to ease these tensions, leading to a pullback in precious metal prices and strengthening the US dollar.
Analysts note that the recent slump reflects a shift in market sentiment rather than a fundamental issue with precious metals. While spot prices remain elevated, the ETF correction is viewed as a potential profit-taking and rebalancing event as equity markets show strength.
Despite the volatility, the current correction in silver ETFs is being considered a potentially attractive entry point for investors. Experts advise a disciplined approach, seeing this as a strategic accumulation zone rather than an opportunity for aggressive short-term speculation, given the ongoing price fluctuations.
