DAVOS, Switzerland, January 22, 2026 — Gold futures tumbled Wednesday as President Trump signaled a surprisingly conciliatory shift in his approach to Greenland, a move that analysts say reflects growing exhaustion in precious metal markets. The price of gold futures fell approximately 1.54% from a recent peak of $4,890.35.
Economic Optimism and a Softer Stance
President Trump’s address at the World Economic Forum in Davos highlighted positive economic indicators and a less confrontational tone regarding Greenland.
- President Trump touted economic improvements during his first year in office.
- He contrasted current conditions with what he described as “stagflation” under the previous administration.
- The shift in tone regarding Greenland coincided with a decline in gold futures.
- Core inflation over the past three months has been 1.6%, while fourth quarter growth is projected at 5.4%.
In his speech, Trump asserted that the U.S. economy has moved from “stagflation” to a period of “virtually no inflation and extraordinarily high economic growth.” He emphasized specific economic indicators, noting that core inflation over the past three months has been 1.6%, while fourth quarter growth is projected at 5.4%. He also highlighted that more than 1.2 million people have been removed from the food stamp program since his inauguration in January 2025.
What factors are driving the recent decline in gold futures? The softening of President Trump’s rhetoric on Greenland appears to be a key catalyst, suggesting a cooling of geopolitical tensions and reduced safe-haven demand for gold.
The President also touched on policy changes, including “regulatory cuts and the use of tariffs to reduce the trade deficit,” which he characterized as “the largest in world history” before his interventions. While justifying actions ranging from Venezuela to Greenland, Trump indicated he no longer desires to pursue Greenland with “excessive force.”
Technical Analysis Points to Further Declines
Analysts are watching key support levels closely. If gold futures close Wednesday below $4,771, they could test the next significant support at the 9 EMA ($4,658) on Thursday. A breakdown at that level could accelerate selling pressure, potentially continuing until the Federal Reserve’s meeting on January 27-28, 2025.
The spot gold/silver ratio is also under scrutiny. A move above the immediate resistance at 54.29, after a strong reversal from lows of 49.31, could further accelerate the slide in gold futures. The ratio currently stands at 51.75, with a day’s gain of approximately 2.78%.
In conclusion, gold futures are expected to remain under selling pressure, with any rallies likely to be met with renewed selling. Bullish sentiment remains largely dependent on expectations of further rate cuts by the Federal Reserve this year.
