US Stocks Slide on Tariff Tensions; Gold, Silver Hit Records : Comments from Vijay Valecha , CIO – Century Financial

Vijay Valecha, January 20, 2026, Middle East News 247

US Markets

Despite muted trading volumes due to a US market holiday, the SPX index closed 0.89% lower on Monday, while the NDX index closed 1.19% lower. Tuesday’s Asian session is seeing continued weakness with the SPX index trading 0.44% lower and the NDX index down by 0.32%.

The decline in US equities has also extended to the US dollar, amid President Donald Trump’s threat of tariffs on European allies opposing his push to control the Danish Arctic territory of Greenland. Investors now await the EU’s response to Trump’s threats, waiting to be decided at an emergency meeting on Thursday. A Supreme Court decision on whether to strike down Trump’s tariffs is also expected next week, keeping policy-related volatility high with market participants reacting accordingly. However, focus may soon shift to the Q4 earnings season as major earnings from companies like Netflix, Interactive Brokers, and 3M are scheduled for release today.

From a technical perspective, the SPX index is continuing its weakness after a significant gap down on Monday took prices below the 9- and 21-SMA levels on the daily chart, reaffirming bearish pressure in the short term. The 50-SMA level near the $6,844 mark remains a crucial support for the index, below which there might be further weakness.

US Dollar Index

The Dollar Index is down by 0.11% and is currently trading at 98.93.

From a fundamental stance, Treasury Secretary Scott Bessent said that the Supreme Court will not overturn Trump’s tariffs, noting that US customs revenue has reached a historic high, up 234% YoY in 2025 to $264 billion, $185 billion more than in 2024. Looking ahead, the auction of U.S. Treasury bills is expected to garner attention.

US short-term Treasury yields have been trending higher over the past few sessions. This is well evident from the 1-year treasury yields; a similar stance is expected in the 2-year yields as well.

From a technical stance, the index is testing the breakout retest mark of 98.75-98.86. It must be noted that the 21- and 50-Day EMA also coincide with these 98.85 and 98.83. Currently, on the hourly chart, the index has already bounced off this level after printing a hammer candlestick, supporting a bullish stance from hereon. However, note that the 98.75-98.86 level is the pivot.

Looking at EURUSD, it is currently testing the 21- and 50-Day EMA resistance. Note that this level coincides with the trendline resistance, supporting a bearish stance for the currency pair. Looking at the yen, the USDJPY pair has bounced after retesting the trendline resistance. The trendline has been formed connecting the highs of 161.95 on 1 July 2024, 157.90 on 17 November 2025 and 157.75 on 15 December 2025, on the weekly chart, supporting a bullish stance on the pair.

Crude Oil

WTI rose 0.59% yesterday and is up 0.22% in early trading today, with gains supported by ongoing geopolitical concerns.

Fundamentally, while tensions in Iran have eased slightly, broader global unrest continues to support oil prices. President Trump’s comments on Greenland and looming tariff risks are adding to market uncertainty. Meanwhile, earlier Ukraine drone attacks that disrupted supply in Russia and Kazakhstan have reduced oil flows, helping Brent hold a floor near $60. This has limited downside pressure on crude prices despite ongoing concerns around global demand and oversupply.

Technically, WTI is trading above its 21- and 50-day SMAs and is taking support at the 9-day SMA, while remaining below the 100- and 200-day SMAs. Resistance is seen at $59.76, near the 100-day SMA, and a break above this level could push prices toward the psychological $60 mark. On the downside, support lies at the 9-day SMA around $59.17. A break below this could open the way to the next support at $58.31, close to the 100-day SMA. The RSI is stabilising around 54, suggesting there is still room for upside.

Gold & Silver

Gold reached a new all-time high of $4,714 per ounce, while silver hit a new record of $94.72.

First, the Greenland crisis has sparked sharp safe-haven demand amid Trump’s threat of EU tariffs. Additionally, criminal probes into Fed Chairman Powell have shaken confidence in the dollar, which had supported commodities. Finally, non-stop accumulation by central banks continues to provide a solid institutional support for the precious metals. Should tensions in Greenland continue and Fed independence concerns escalate, new highs are probable.

As for Silver, the large physical supply gap has been worsened by China’s tightening of controls on refined silver exports, leading to genuine squeeze dynamics that could see prices rise towards $100.

On a related note, the upcoming Supreme Court hearings on January 21 regarding Trump’s right to dismiss Fed Governor Lisa Cook, as well as the postponed PCE inflation data, will drive the build-up to the FOMC meeting on January 29, impacting the precious metals.

Technically speaking, gold is still trading in the defined uptrend channel, which is currently at the resistance level of $4,720-$4,730. However, due to the current leg towards the channel resistance, gold could pull back towards support near $4,679 or $4,630, which could be considered as a buy-the-dip level.

Silver is still structurally bullish on the 4H chart, now targeting the high of the $94.8-$95.2 area. Breaking out and holding above $95.2 would logically extend the rise to $97.06, while a failure would trigger a pullback to $92.57 or even $91.26, both of which are good dip buys under the prevailing uptrend.

Source

Middle East News 247