The economist called the fall in gold prices an expected reaction.

The fall in gold prices after the announcement by US President Donald Trump about the Greenland agreement and the abolition of duties against Europe was largely expected. Gold is traditionally perceived not as a tool for making money, but as a way to wait out a period of high turbulence and save capital when the world enters a phase of uncertainty. Mikhail Nikitin, Head of the International Business and Finance Practice, partner of 5D Consulting, told Izvestia on January 22.

"Any signals of a reduction in tension, whether it is a waiver of trade duties or an attempt to reach agreements on sensitive topics such as Greenland, automatically reduce the demand for protective assets. Investors are starting to exit protective assets, and the price is being adjusted, especially if the growth was sharp and largely emotional before," he explained.

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According to the expert, if we look at the dynamics more broadly, such movements are historically typical for gold. A rapid rise is almost always followed by an equally noticeable correction: the bubble deflates, and the market returns to a more rational state. At the same time, it is important to understand that such high price levels do not match well with the real liquidity of gold. This market has many barriers, from logistics to licensing, so such prices reflect a desire to "freeze" money rather than the ability to actively and quickly work with it. That is why only a few win at the peak, and most of those who enter protective assets chaotically record only safety, but not profitability.

The future trajectory will directly depend on the number and severity of global conflicts and unresolved issues. As long as tension points remain in the world — Israel, Gaza, Ukraine, Syria — and new topics appear that seemed unthinkable until recently, interest in protective assets will continue. The longer the world lives without legally formalized and stable peace agreements, the longer gold and other "safe havens" remain at elevated levels. But as soon as the discharge begins, the market quickly plays it down.

"Gold has not lost its role in global investment portfolios after the recent decline. It still performs the function of a stabilizer, an element of homeostasis that helps to survive periods of sharp fluctuations and uncertainty. This is not about capital growth, but about its preservation. And in this sense, the current price movement does not look like an anomaly, but a completely standard episode that easily fits into the historical logic of gold's behavior over the past decades," concluded Nikitin.

Earlier it was reported that gold prices dropped sharply at auction on the evening of January 21 amid statements by US President Donald Trump regarding Greenland. The precious metal has retreated from record levels in a short period of time. The decline in quotations continued on the morning of January 22.

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