New Delhi, India | January 31, 2026
A day after touching record highs, India’s bullion market witnessed panic selling on Friday, with silver crashing by up to ₹84,000 per kilogram and gold slipping nearly ₹15,000 per 10 grams, triggering sharp losses across domestic and global markets.
Heavy profit booking, easing global risk concerns, and renewed strength in the US dollar combined to pull prices sharply lower, traders said.
MCX: Silver Records One of Its Sharpest Single-Day Falls
On the Multi Commodity Exchange (MCX), March delivery silver contracts witnessed intense selling pressure. Prices fell by nearly ₹84,000 to ₹83,977, marking a steep 21% decline in a single session, settling at around ₹3,15,916 per kilogram.
Just a day earlier, silver had surged to record levels, making Friday’s reversal one of the sharpest falls in recent trading history.
Silver Slides Sharply From Record Highs
In the Delhi bullion market, silver prices dropped ₹20,000 (about 5%) to ₹3,84,500 per kilogram (inclusive of all taxes). This came immediately after silver had surged ₹19,500 in the previous session to touch an all-time high of ₹4,04,500 per kilogram.
Internationally, silver prices also weakened sharply. Spot silver fell 12.09% ($14) to $101.47 per ounce, while intraday trade saw prices slump as much as 17.5% to $95.26 per ounce, reflecting global risk-off sentiment.
Gold Prices Also Under Heavy Pressure
Gold followed silver lower amid broad-based selling. In Delhi, 99.9% pure gold fell ₹14,000 (7.65%) to settle at ₹1,69,000 per 10 grams. On Thursday, gold had surged by ₹12,000 to hit a fresh lifetime high of ₹1,83,000 per 10 grams.
On MCX, February delivery gold contracts slipped ₹15,246 (around 9%) to trade near ₹1,54,157 per 10 grams, as traders unwound long positions aggressively.
Why Did Gold and Silver Prices Crash?
Market experts point to three key reasons behind the sudden collapse in bullion prices:
1. Aggressive Profit Booking
International investment consultant Ratnam Chandra said that after multiple sessions of sharp gains, large institutional investors began cutting long positions, triggering widespread selling across precious metals.
2. US Government Shutdown Avoided
According to Manish Verma, owner of Shree Shyam Jewellers, a temporary agreement between Donald Trump and US Senate Democrats to avert a government shutdown reduced safe-haven demand for gold and silver.
3. Federal Reserve, Dollar, and Yields
Ratnam Chandra further noted that uncertainty surrounding leadership at the Federal Reserve, with Kevin Warsh reportedly emerging as a potential future Fed chief, has unsettled markets.
Fears of a more hawkish interest rate stance boosted the US dollar index and Treasury yields, both of which are traditionally negative for precious metals. Technically, bullion prices were also in an overbought zone, making a correction inevitable.
Market Outlook
Analysts caution that bullion prices may remain volatile in the near term as global macroeconomic cues, US monetary policy expectations, and investor risk appetite continue to shift. While long-term fundamentals for gold remain intact, sharp swings are likely after such extreme price movements.
