Summary of this article
Gold and silver prices crashed after a near two-week rally
Investors booked profits, rise in dollar also led to fall in gold, silver prices
Gold prices tumbled after rising for two straight weeks on December 30, 2026, as investors looked to book profits. In global markets, the fall in gold and silver prices wiped out over $3 trillion on January 29, 2026, and the fall extended to domestic markets as well. Analysts said that the sudden fall in prices was triggered by a stronger dollar, coupled with speculative trading.
On the Multi Commodity Exchange (MCX), gold futures for April 2026 were trading at Rs. 1.80 lakh for 10 grams, down over 3 per cent from the previous close. Meanwhile, silver futures for March 2026 were trading at Rs. 3.84 lakh per kg, down 7.70 per cent from the previous close.
The sudden fall in global markets led some investors to speculate whether the fall was natural or a kind of manipulation. Some market participants also pointed out to increasing demand from crypto investors and exchange-traded funds (ETFs), which also likely added to the volatility in the market. Analysts said that the volatility came as investors looked to book profits as both gold and silver prices have shown a sharp surge.
Despite the fall, gold is on track to see the best month since 1980, rising more than 24 per cent so far in January 2026. Silver prices have also risen around 60 per cent this month alone, extending from last year’s rally.
Prices of precious metals also eased as the dollar edged higher after the US Federal Reserve decided to keep interest rates unchanged. Fed Chair Jerome Powell said after the monetary policy meeting that US inflation in December 2025 likely remained well above the Fed’s 2 per cent target.
Meanwhile, US President Donald Trump has said he was weighing out options against Iran, including targeted air strikes on security forces and leaders to encourage protestors. Closer home, Trump is also expected to name Powell’s successor on January 30, 2026.
Analysts expect volatility to continue in the markets, and have advised retail investors to be on a wait-and-watch mode. While gold still has a further scope of a rally, analysts see the surge in silver prices has neared its end.
“For retail investors, a weekly weak close is needed, which means today, too, gold and silver should close with a significant fall. It seems a bit difficult, but three back-to-back sessions of a downtrend is needed to confirm weakness in the counter,” said Jigar Trivedi, senior research analyst, IndusInd Securities (formerly Reliance Securities).
