Gold and silver prices saw heavy selling on January 30, as investors booked profits after a strong rally and the US dollar strengthened.
On the Multi Commodity Exchange (MCX):
Silver crashed ₹72,000 per kg, or 20 percent, in one of its biggest single-day falls
The March silver contract slipped to an intraday low of ₹3,27,913 per kg
In the global market, spot silver fell 18 percent to $94.85 per ounce
The sharp fall brought an end to silver’s five-day rally on MCX.
Silver prices had already started correcting late on Thursday. From the intraday high, prices fell by more than ₹20,000 to settle at ₹3,99,893.
From the record high of ₹4,20,048, silver has dropped over ₹92,000 per kg
This marks a correction of around 22 percent
Gold prices mirrored the weakness seen in silver.
MCX gold futures for February delivery fell ₹15,246 per 10 grams, or 9 percent
Prices touched an intraday low of ₹1,54,157
From the record high of ₹1,80,779, gold has declined nearly ₹26,600 per 10 grams
The sharp reversal was triggered by political developments in the US. President Donald Trump officially announced Kevin Warsh as his nominee for the next Chair of the US Federal Reserve.
Market participants believe Warsh may:
Take a tougher stance on inflation
Be less inclined to support interest rate cuts
This led traders to scale back expectations of policy easing, triggering profit-taking in gold and silver.
After the announcement, the US dollar strengthened sharply.
The US dollar index rose 0.6 percent to 96.76
A stronger dollar makes gold and silver more expensive for buyers using other currencies
Despite the sharp correction, both metals are still set to end January with strong gains:
Gold is up around 20 percent for the month
Silver has gained about 46 percent
Silver’s price rise over the past year has been unusually fast:
Crossed ₹1 lakh per kg in October 2024
Reached ₹2 lakh in December 2025
Hit ₹3 lakh in January 2026
Touched ₹4 lakh in just nine trading sessions before the recent fall
Market experts say short-term volatility may continue, but the broader outlook for precious metals remains positive amid global economic uncertainty and geopolitical risks.