**Market Brief: Silver's Historic Correction** **Crash Overview** Silver futures on the MCX witnessed a historic single-day collapse on January 30, 2026. Prices plunged approximately **27%**, erasing over **₹1 lakh** per kg in a single session. The white metal, which recently touched a lifetime high of nearly **₹4.2 lakh** per kg, crashed to settle around the **₹2.92 lakh** level. This marks one of the steepest single-session declines in decades. **Key Drivers** * **Fed Leadership Shift:** Sentiment turned bearish following reports of Kevin Warsh’s nomination as the next Federal Reserve Chair. His perceived "hawkish" stance (favoring tighter monetary policy) triggered a sharp rebound in the US Dollar, pressuring dollar-denominated commodities. * **Margin Calls:** Major exchanges, including the CME, raised margin requirements for precious metals. This forced leveraged traders to liquidate positions aggressively to cover costs, accelerating the sell-off. * **Profit Booking:** The crash followed a vertical rally where silver had gained nearly **58%** in January alone. Traders rushed to lock in gains after the metal reached extreme overbought levels. **Global Context** The sell-off was mirrored globally, with international spot silver tumbling from record highs of nearly **$120** per ounce to trade near **$85** per ounce. Gold also faced significant pressure, dropping in tandem, though silver's high volatility made its correction far more severe. **Outlook & Fundamentals** Despite the massive "leverage flush," structural fundamentals remain active. Analysts note that the long-term investment case is supported by deep supply deficits and critical industrial demand from the solar, AI, and green energy sectors. Market observers view this as a sentiment reset rather than a reversal of the secular bull trend, with Citi maintaining a **$150** target in the medium term.