**MARKET BRIEF: PRECIOUS METALS CRASH** **Date:** January 31, 2026 **EXECUTIVE SUMMARY** The blistering rally in precious metals has come to a violent halt. Following weeks of vertical gains, both gold and silver witnessed a massive selloff on Friday, January 30, triggered by profit-taking and major Federal Reserve news. **KEY DEVELOPMENTS** * **Historic Intraday Crash** Silver prices collapsed **~15-17%** in a single session—the worst daily decline since 2011. After hitting a record high near **$121 per ounce**, global spot prices plunged below the psychological **$100** mark. Gold followed suit, dropping **~5-7%** (its steepest fall since 2013) to trade near **$5,100-$5,300**, retreating from its peak of over **$5,600**. * **The "Warsh" Effect** The selloff accelerated after President Trump announced the nomination of **Kevin Warsh** as the next Federal Reserve Chair (replacing Jerome Powell in May). Markets reacted sharply to Warsh’s reputation as an "inflation hawk" and advocate for a smaller Fed balance sheet. This triggered a rapid rebound in the US Dollar, putting immediate pressure on dollar-denominated bullion. * **Extreme Profit Booking** The correction validates recent warnings that the market’s "near-vertical rise" was unsustainable. Before the crash, silver had surged nearly **60-70%** in January alone. Investors moved aggressively to book profits after one of the strongest monthly performances in decades. **DOMESTIC IMPACT (INDIA)** * **MCX Carnage:** Domestic futures mirrored global chaos. Silver crashed by approx. **₹68,000 per kg** in a single day, falling from a peak of **₹4.20 lakh** to below **₹3.35 lakh**. * **Gold Slide:** Gold prices corrected sharply, shedding roughly **₹11,000–₹20,000 per 10g** from record highs. **MARKET OUTLOOK** While the long-term bullish drivers (geopolitical tension, debt concerns) remain, the immediate "euphoria" phase has broken. Volatility is expected to remain extreme as the market digests the new Fed leadership path and unwinds over-leveraged long positions. **Next:** If you are holding positions, check your stop-losses immediately; would you like me to analyze the technical support levels for Silver following this drop?