Silver Drops 17% in Worst Session in 15 Years; Gold Posts Sharpest Decline Since 2013
📉 MARKET BRIEF: Historic Crash in Precious Metals
**Warsh Nomination Triggers Massive Reversal**
Global commodity markets are reeling from a historic selloff as of **January 31, 2026**. President Trump’s nomination of **Kevin Warsh** as Federal Reserve Chair has upended sentiment, triggering a massive profit-taking wave that erased weeks of gains in a single session.
**Gold: Worst Drop Since 2013**
Gold prices collapsed approximately **9%**, marking the metal's steepest single-day decline in over a decade.
* **Spot prices** plummeted to the **$4,895 – $5,080** range per ounce.
* **MCX Futures** saw a vertical drop of nearly **₹11,000 per 10g**, settling around the **₹1.54 lakh – ₹1.60 lakh** levels.
* The selloff comes immediately after the metal touched record peaks above **$5,100**.
**Silver: Worst Crash Since 1980**
The white metal faced a far more brutal correction, crashing approximately **30%** in what analysts are calling the worst trading day in nearly 46 years.
* **Spot Silver** dived to near **$83.45** per ounce, down from recent highs exceeding $120.
* **MCX Silver** witnessed a historic wipeout, plunging roughly **₹1.06 lakh per kg** to trade near **₹2.93 lakh**.
**Key Drivers**
* **Dollar Resurgence:** The nomination eased market fears regarding Fed independence, sending the **US Dollar Index (DXY)** surging 0.8% and pressuring dollar-denominated assets.
* **Liquidation:** A "sell everything" sentiment took hold as leveraged positions were unwound, exacerbating the slide amid extreme margin pressure.
**Outlook**
Volatility remains extreme. While the long-term structural drivers for precious metals remain, the immediate technical damage suggests a period of cooling and consolidation as markets digest the new Fed leadership landscape.
[What caused the 2026 silver crash?](https://www.youtube.com/watch?v=jH-WluAsnyQ)
This video provides relevant context on market reactions to political events and sharp selloffs in gold and silver, similar to the current Kevin Warsh-driven crash.
http://googleusercontent.com/youtube_content/0