Gold Prices Drop on MCX Amid Profit Booking, Easing Tensions

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Last Updated: 22nd January 2026 - 11:51 am

Summary:

MCX gold futures dropped 0.46% to ₹1,52,158 per 10 grams on January 22 amid profit booking, easing geopolitical tensions, and dollar strength.

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The domestic gold futures market faced pressure on January 22 as traders took profits following improved geopolitical conditions and a strong dollar. Gold futures on the MCX were down 0.46% to ₹1,52,158 per 10 grams at 9:35 a.m. on Thursday, January 22nd. While traders sold their holdings in gold futures due to reduced geopolitical risks and a stronger dollar, silver futures rose 0.25% on physical buying support.

After the easing of Trump's earlier rhetoric regarding Greenland, gold futures internationally declined by about 1% prior to the release of U.S. economic data that may provide clues for impending Fed interest rate changes.

Trump Softens on Greenland, Tariffs

President Trump has softened his position regarding tariffs on European countries regarding the issue of Greenland; he recently announced a framework agreement with NATO Secretary General Mark Rutte regarding the future of Greenland.

As tensions decreased, so did risk aversion that motivated investors to purchase gold as a safe-haven asset. Following recent gains in gold prices, this was an opportunity for many investors to take profits.

Dollar Strength Adds Pressure

The bullish rally in the gold market was aided considerably by the increase in value of the dollar. The U.S. Dollar Index rose to 98.81, which was the largest uptick in the dollar’s value in a number of weeks. When the value of the dollar rises, it ultimately makes it more expensive for foreign investors to purchase gold, therefore causing demand for gold to decrease.

The behaviour of U.S. Gold Futures was reflective of the decline in domestic gold refinery, while silver remained relatively stable due to demand for silver directly from the marketplace.

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