Gold and Silver Prices on the Brink as Trump Targets Rare Earth Nations and Faces Global Criticism at Davos

Precious Metals Tumble as trump’s Policy Stance Rattles Markets

Davos, Switzerland – January 24, 2026 – Gold and silver futures are facing meaningful downward pressure as investors react to statements made by United States President Donald Trump during a key address at the World Economic Forum in Davos.Concerns surrounding potential tax increases to fund initiatives aimed at securing rare earth materials are fueling volatility in the precious metals market, currently at record highs.

Trump’s Aggressive Approach Sends Shockwaves

President Trump, emboldened by previous international engagements such as his involvement in Venezuela, has adopted a firm stance on controlling access to strategically critically important resources. This has triggered anxieties about potential economic repercussions and increased investor uncertainty, driving a flight to safety – followed by a swift reversal as Trump’s intentions become clearer. The President’s rhetoric has particularly focused on Greenland, hinting at a heightened ambition to exert influence over the region’s vast mineral wealth.

Gold Futures Face Potential 7% Correction

Technical analysis suggests Gold futures could be poised for a substantial correction. A breach of the $4,720 support level could trigger a roughly 7% decline from Wednesday’s peak. This potential downturn is directly linked to the unfolding events in Davos and the ongoing scrutiny of President Trump’s policy announcements. The impact of the speech, delivered between 2:30 pm and 3:15 pm Central European Time, is still being digested by traders worldwide. The World Economic Forum summit, attended by nearly 3,000 delegates from over 130 nations, provided a global stage for these pivotal statements.

Silver Futures Signal Exhaustion, Risking 17% Plunge

Silver Futures are exhibiting signs of exhaustion after repeatedly failing to surpass the $94.944 resistance level. A negative reception to President Trump’s address could accelerate this decline, potentially breaking through the $86.394 pivotal point. Analysts estimate a breakdown below this level could lead to a significant sell-off,erasing up to 17.73% of today’s peak value.

Market Overview: gold and Silver Futures

Asset	current Sentiment	Key Support Level	Potential Decline
Gold Futures	Bearish	$4,720	Approximately 7%
Silver Futures	Highly Bearish	$86.394	Approximately 17.73%

Geopolitical Implications and Rare Earth Concerns

The broader implications of President Trump’s strategies extend beyond precious metals. The United States has been increasingly focused on securing its supply chains for rare earth elements, crucial components in numerous high-tech industries. These elements are often sourced from countries with complex geopolitical landscapes, prompting the U.S. to explore alternative strategies. The Department of the Interior reported in late 2025 that the U.S. relies on China for over 80% of its rare earth element imports. U.S.Department of Energy

What’s Next for Precious Metals?

The coming days will be critical in determining the trajectory of gold and silver prices. Investors will closely monitor further developments in President Trump’s policy agenda and assess the potential for increased geopolitical tensions. The response from international leaders will also play a significant role in shaping market sentiment.

will President Trump soften his stance on Greenland in the face of international criticism,or will he double down on his pursuit of resource control? and how will these developments impact the long-term investment appeal of gold and silver as safe-haven assets?

Disclaimer: This analysis is based on observations of market activity and shoudl not be considered financial advice.Trading in financial markets involves substantial risk, and investors should carefully consider their risk tolerance before making any investment decisions.

How is Trump’s focus on rare earth minerals likely to affect gold and silver prices?

Gold and Silver Prices on the Brink as Trump Targets Rare Earth Nations and Faces Global Criticism at Davos

The World Economic Forum in Davos is typically a stage for global cooperation, but this year, the atmosphere is decidedly tense. Former President Trump’s renewed focus on securing American dominance in rare earth minerals – and the increasingly assertive tactics being proposed – are sending ripples through commodity markets, especially impacting gold prices and silver prices. Investors are bracing for potential volatility as geopolitical risks escalate.

Trump’s Rare Earth Strategy: A Recap

Trump’s strategy, echoing concerns raised during his first term, centers on reducing U.S. reliance on China for rare earth elements (REEs). These minerals are crucial for manufacturing everything from smartphones and electric vehicles to defense systems. The proposed methods, though, are substantially more aggressive than previous rhetoric. Reports suggest a willingness to impose significant tariffs – and even explore direct intervention – in nations perceived as hindering U.S. access to these vital resources.

This isn’t simply about trade; it’s about national security, according to proponents of the strategy.However, the approach is drawing sharp criticism from allies and raising fears of a new era of resource nationalism.

The Impact on Precious Metals: Why Gold and Silver?

The connection between rare earth policies and precious metals investing might not be immediately obvious, but it’s rooted in the classic “safe haven” dynamic. Here’s how the situation is unfolding:

* Increased Geopolitical Uncertainty: Trump’s actions are injecting significant uncertainty into the global economic landscape. When geopolitical risks rise, investors tend to flock to safe haven assets like gold and silver.

* Dollar weakness: Aggressive trade policies often lead to a weakening U.S. dollar. Historically, a weaker dollar correlates with higher gold prices, as gold is priced in dollars and becomes more affordable for international buyers.

* Inflationary Pressures: Tariffs and supply chain disruptions caused by resource nationalism can contribute to inflation. Gold is often seen as a hedge against inflation, preserving purchasing power during times of rising prices.

* Industrial Demand for Silver: While gold is primarily a monetary metal, silver has significant industrial applications, including in electronics and renewable energy technologies – sectors heavily reliant on REEs. Disruptions to REE supply chains could indirectly boost silver demand as manufacturers seek alternative materials or stockpile existing supplies.

Davos Reactions and Global Criticism

The reaction at Davos has been largely negative. European leaders have expressed concerns about protectionism and the potential for escalating trade wars.Representatives from REE-producing nations – including Australia, Brazil, and several African countries – have voiced opposition to what they perceive as U.S.coercion.

The criticism isn’t limited to governments. Major industry players are warning about the potential for significant supply chain disruptions and increased costs. This widespread disapproval is adding to the overall sense of instability, further fueling interest in safe haven assets.

Current Price Levels and Expert Predictions (january 24,2026)

As of today,January 24,2026,gold is trading around $2,450 per ounce,a 3.2% increase from the start of the year. Silver is currently at $32.50 per ounce, showing a more substantial gain of 6.8% year-to-date.

Analysts at several major banks are revising their gold price forecasts upwards, citing the escalating geopolitical tensions and the potential for further dollar weakness. Some predict gold could reach $2,600 per ounce by the end of Q2 2026. Silver price predictions are more varied, but a consensus is emerging that it could surpass $35 per ounce if the REE situation deteriorates further.

Ancient Precedents: Resource Nationalism and gold

History offers several examples of how resource nationalism can impact gold prices.

* The Oil Crises of the 1970s: The OPEC oil embargoes led to soaring oil prices and significant economic uncertainty, driving investors into gold as a safe haven.

* Russian Annexation of Crimea (2014): The geopolitical tensions surrounding Crimea triggered a rally in gold prices as investors sought protection from potential instability.

* US-China Trade War (2018-2020): The trade war between the US and China created economic uncertainty and boosted demand for gold.

these events demonstrate a clear pattern: geopolitical instability and resource-related conflicts tend to benefit gold and, to a lesser extent, silver.

Investing in Gold and Silver: Options for Investors

For investors looking to capitalize on the current market conditions, several options are available:

1. Physical Gold and Silver: Buying gold bars, silver coins, or gold jewelry provides direct ownership of the metal.
2. Gold and Silver ETFs: Exchange-Traded Funds (ETFs) offer a convenient and liquid way to gain exposure to gold and silver prices without the need for physical storage.
3. Gold and Silver Mining Stocks: Investing in companies that mine gold and silver