Global stock markets are under pressure, while gold and silver are witnessing strong demand due to rising risk-off sentiment triggered by the U.S. President’s Greenland proposal and proposed tariffs on several European nations. Heightened U.S.–EU tensions pushed investors toward safe-haven assets, leading precious metals ETFs to hit record highs on January 21. Gold futures surged sharply, with February contracts crossing ₹1.58 lakh per 10 grams, while silver futures also touched new lifetime highs.
Several gold and silver ETFs posted strong gains, ranging between 6% and 8%, reflecting growing investor preference for metals amid geopolitical uncertainty. Analysts warn that if tariffs are implemented, a retaliatory response from Europe could spark a trade war, further weakening equity markets. However, any rollback of these policies could lead to a temporary market rebound.
Market experts believe ongoing uncertainty is driving a structural shift toward precious metals. VK Vijayakumar noted that policy-driven volatility is strengthening gold and silver’s safe-haven appeal. HDFC Securities remains bullish on metals till 2026, recommending up to 10% portfolio allocation, while Bandhan AMC’s Vishal Kapoor emphasized ETFs as a more efficient and accessible way to invest compared to physical metals, especially during volatile global conditions.
