Gold, Silver Retrace; Could Crypto Rally After Fed Aid? Now?

Gold and silver retreat after record highs amid Fed liquidity injection and political shifts

  • Gold and silver retraced on Jan. 22, 2026 after recent all-time highs.
  • Both metals reached new peaks on Jan. 21, breaching $4,700 for gold and $95 for silver.
  • President Trump canceled EU tariffs and announced a framework for a Greenland deal prior to the dip.
  • The Federal Reserve began a liquidity injection on Jan. 20, placing $8.3 billion of a $55 billion plan.
  • Bitcoin (BTC) briefly fell to $87,000 and later reclaimed $89,000 amid fragile market conditions.

Global markets saw a pullback in precious metals on Jan. 22, 2026 after both gold and silver hit fresh highs the day before. The move followed political and policy developments that shifted investor positioning across asset classes.

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On Jan. 21, gold climbed past $4,700 and silver rose above $95, each marking recent peaks before the retracement. The pullback occurred as investors reacted to policy changes and liquidity moves in the U.S.

Political actions by President Trump — including the cancellation of EU tariffs and the announcement of a framework for a Greenland deal — preceded the shift away from metals. Market participants had moved into safe havens late last year amid rising macroeconomic uncertainty.

The Federal Reserve began a liquidity injection on Jan. 20, 2026, adding $8.3 billion as part of its total $55 billion plan. Past Fed interventions have often supported rallies in risk assets, including cryptocurrencies.

Cryptocurrency prices reacted partially to these shifts. Bitcoin (BTC) briefly fell to about $87,000 before reclaiming roughly $89,000, showing early signs of recovery but not a full turnaround. Market commentary notes that the recovery remains limited.

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Despite the liquidity injection and metal price dips, the cryptocurrency market remains fragile. Ongoing geopolitical tensions, macroeconomic uncertainty and the absence of a 2026 interest rate cut from the Federal Reserve continue to constrain large risk-on moves, leaving digital assets prone to sideways trading in the near term.

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