📉 MARKET SHOCK: Gold & Silver Plunge as Trump Scraps EU Tariffs!
The "Safe Haven" rally has hit a massive wall. In a stunning reversal at the World Economic Forum in Davos, President Trump has announced he will NOT impose the 10% tariffs on European allies that were set to begin on February 1st.
The news has sent immediate shockwaves through the commodities market, ending one of the most aggressive gold and silver bull runs in history.
The Details of the "Davos Pivot"
The Announcement: After a high-stakes meeting with NATO Secretary General Mark Rutte, the President declared on Truth Social that he is walking back the tariff threat following a "framework for a future deal" regarding Arctic security and Greenland.
Gold’s Retreat: After touching a historic peak of $4,800/oz yesterday, spot gold prices are seeing a sharp correction as the "geopolitical risk premium" evaporates.
Silver’s Slide: Silver, which had been the year's top performer reaching $94/oz, is facing heavy selling pressure as investors pivot back into riskier assets like equities.
Why the Sudden Drop?
For the past week, precious metals surged because investors feared a full-blown trade war between the U.S. and the EU over the Greenland acquisition dispute. With the 10% (and potential 25%) tariff threat now off the table, the "fear trade" is unwinding rapidly.
"We are seeing a classic 'sell the news' event," says one senior market analyst. "The tariffs were the primary fuel for gold's fire. Without that immediate threat, the market is re-adjusting to a more stable transatlantic outlook."
