Precious Metals Plunge: Gold & Silver Prices Crash Up To 5%, After Record Highs

Gold and silver prices have fallen sharply in global markets, from above ~$5,400/oz to about ~$5,250–$5,450/oz. The sudden downturn comes after an extended rally that saw both metals hit unprecedented levels earlier this month. 

On MCX, gold futures with April expiry also dropped to ₹1,75,100 per 10 grams after making a 52-week high of ₹1,93,096

​​The correction in precious metals coincides with the rise in US Treasury yields and the strengthening dollar. Higher yields increase the opportunity cost of non-interest-bearing assets such as gold and silver, while the stronger dollar makes commodities more expensive for buyers globally.

In the early trade on January 30, gold and silver ETF prices plunged after a record rally. Nippon India ETF Gold BeES prices slipped 5.3% to ₹138.70, compared with ₹146.53 in the prior session (Source: NSE). Other ETFs, such as the Tata Silver Exchange Traded Fund and the HDFC Gold ETF, also declined sharply. 

For Indian investors, the sell-off has translated into sharp short-term losses in gold and silver ETFs, which closely track global prices. Traders may see increased volatility, while long-term investors monitor whether prices will stabilise at lower levels before fresh allocations.

What’s Driving the Sell-Off?

Gold and silver prices plunged sharply in global markets on Friday amid speculation that the US Federal Reserve could turn more hawkish under new leadership. 

The decline follows comments from US President Donald Trump, who said he plans to announce his choice to replace Federal Reserve Chair Jerome Powell on Friday. Powell is set to step down when his term ends in May, sparking market speculation over the future direction of US monetary policy.

Markets fear that a more hawkish Fed leadership could keep interest rates higher for longer, strengthening the US dollar and reducing the appeal of non-yielding assets like gold and silver.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.