Silver tanks by ₹44,000 after record high, Gold sees a drop to 1.67 lakh

The relentless rally in the silver market hit a massive roadblock on Friday, January 30, 2026, as prices witnessed a "flash crash" of 6% on the Multi Commodity Exchange (MCX). This sharp correction comes just a day after silver scripted history by touching a mind-boggling lifetime high of ₹4,20,048 per kg. Within a single session, the white metal tumbled to ₹3,75,900 per kg, effectively wiping out more than ₹44,000 from its peak valuation. The sudden reversal has left retail investors stunned, especially after a week where silver prices skyrocketed by nearly 29%, jumping from ₹3.18 lakh to over ₹4 lakh in just eight trading sessions.

Gold opened with a drop of Rs 1,504 at Rs 1,67,899 per 10 grams against the previous close of Rs 1,69,403. It dropped further to hit the low of Rs 1,59,250, a drop of Rs 10,153 or 5.99 per cent. As of last seen, the precious metal futures were trading at Rs 1,7,01, down Rs 1,602 or 0.95 per cent.

The primary trigger for this precipitous fall is a "perfect storm" of macroeconomic factors and technical exhaustion. Speculation intensified on Friday morning that U.S. President Donald Trump is set to nominate a more "hawkish" Federal Reserve Chair—potentially former governor Kevin Warsh—which led to a sudden spike in the U.S. Dollar Index. A stronger dollar and the prospect of tighter monetary policy immediately dampened the appeal of precious metals. Furthermore, analysts pointed out that the market had become "extremely overbought" after silver’s 72% gain in January alone, making a deep correction almost inevitable as institutional investors rushed to book profits.