Precious Metals Plunge in Dramatic Selloff

Precious metals experienced a dramatic selloff on January 30, 2026, with gold and silver prices tumbling sharply after reaching record highs earlier in the week and month. The steep declines followed President Donald Trump's nomination of Kevin Warsh as the next Federal Reserve Chair, a choice that markets interpreted as preserving the central bank's independence and reducing expectations for overly dovish monetary policy, which in turn bolstered the U.S. dollar and prompted widespread profit-taking in safe-haven assets.

Gold saw one of its largest single-day drops on record, falling around 9-11% from recent peaks near $5,600 per ounce. Spot gold traded down to levels around $4,895 to $5,075 per ounce by the close or late trading, with futures settling near $4,745 in some reports, erasing a significant portion of its nearly 30% January rally driven by speculative buying and broader macro uncertainties.

Silver suffered even more severe losses, plunging as much as 26-31% in futures and spot markets—its worst single-day performance since March 1980. The white metal retreated from an all-time intraday high above $121 per ounce to settlements around $78.53 in futures, with spot prices fluctuating between roughly $83 and $99 per ounce at various points, though it remained substantially higher for the month overall after an explosive run-up exceeding 68% at peaks.

Analysts described the volatility as an inevitable correction following an overextended and highly speculative surge, amplified by thin month-end liquidity, a stronger dollar making metals more expensive for global buyers, and the unwinding of leveraged positions. Kitco News experts noted that while the headline moves were shocking, this appeared to be a necessary positioning adjustment within a broader bullish trend, with underlying macro drivers—including central bank demand, industrial needs for silver in renewables and electronics, and persistent inflationary pressures—still firmly in place, supporting precious metals through 2026 despite wider expected trading ranges.

The selloff also rippled into related markets, pressuring copper and mining equities, but some observers viewed the dip as a potential opportunity for physical accumulation, given resilient fundamentals and the flush-out of weaker hands. As markets stabilize, focus shifts to upcoming economic indicators and the Senate confirmation process for Warsh, which could further shape sentiment in the precious metals space amid ongoing global uncertainties.