Gold, silver prices have crashed again! Gold has dropped 3% to Rs 1.6 lakh per 10 grams, while silver is down 10% to Rs 2.68 lakh per kg in domestic markets. The domestic markets mirrored the fall in global markets where silver dropped over 13% and gold declines by 2.77%.
It’s a story of a stunning rally, a record breaking crash, a breather rally, and a crash all over again. Gold and silver have been in focus since 2025 for their unprecedented rally, and a rise that beat all expectations. The bull run has continued into 2026, with gold nearing Rs 2 lakh per 10 grams, and silver crossing Rs 4 lakh per kg in late January.
Then came the savage selloff in the yellow and white metal last week, wiping trillions of dollars from market capitalisation. Analysts have attributed the selloff to US President Donald Trump’s pick of US Federal Reserve governor, and a much expected spree of profit booking. The breather rally that followed was in part a function of rising geopolitical tensions, which now seem to be easing.
Why are gold, silver prices crashing again today?
Gold fell to below $ 4800/Oz in spot, halting a two-day gain, pressured by a rising US dollar after the Federal Reserve signaled caution on rate cuts. Fed Governor Lisa Cook said yesterday that she would not support additional cuts, prioritizing persistent upside inflation risks over signs of a slowing labor market.
“This, combined with President Trump’s nomination of Kevin Warsh as the next Fed chair, seen as more hawkish than other contenders, led markets to factor in a slower pace for potential rate cuts,” says Maneesh Sharma, AVP - Commodities & Currencies, Anand Rathi Shares and Stock Brokers.
“Overall the factors driving fold, including geopolitical risks, robust central bank buying, concerns about Fed independence, rising US debt, trade uncertainty & de-dollarisation, would continue to support the safe-haven asset in long term perspective where we still anticipate gold to cross $ 6000/oz levels in H2 2026,” he told TOI.
After a recovery at the start of this week after a dull domestic budget, silver prices fell once again in early morning trade following a sharp fall in China which is now below $100. Shanghai silver futures dropped ~15% during the trading day; a major Chinese silver futures fund UBS SIDC hit its daily loss limit of ~10% for the 4th straight day, meaning panic selling and forced exits.
Praveen Singh, Head of commodities, Mirae Asset ShareKhan explains:
- Precious metals are tumbling today due to a confluence of numerous negative factors. Stronger Dollar Index, currently at 97.80, is up 0.20% for the day.
- The Index, boosted by a supporting streak of the US data (Chicago PMI, hotter-than-expected US PPI, robust ISM PMIs) has gained nearly 2.4% since its four-year low reached on January 27.
- Gold and silver surged sharply higher in the last two days as the dip buyers stepped in while the US JOLTs job opening and nonfarm payroll data scheduled for the week got delayed due to the partial shutdown of the US government.
- However, as the shutdown has ended, the data will be getting released. JOLTs number will be out today, while the monthly job report will be released on February 11.
- In addition, yesterday, the possibility of US-Iran talks in Turkey getting postponed also pushed precious metals and other commodities higher. However, as per the latest development, talks are scheduled to take place in Oman tomorrow, due to which investors have turned cautious.
What’s the outlook, prediction for gold, silver prices in the coming days?
Praveen Singh of Mirae Asset ShareKhan is of the view that since geopolitical worries have been a key tailwind for precious metals and other commodities, easing geopolitical worries will weigh on the commodities.
“Bitcoin crashing below $70K, to a 15-month low, is also hurting sentiments. Many investors who got caught in the meltdown in commodities on January 30 will try to exit on a bounce. Huge volatility is expected in commodities due to lingering geopolitical uncertainties and the upcoming US NFP report,” he told TOI.
Maneesh Sharma of Anand Rathi Shares and Stock Brokers expects volatility to persist in the near-term.
“With the recent downside seen, the volatility of precious metals will persist in the near term while higher volatility environments will not remain the same as was witnessed since last week. Nonetheless, a Federal Reserve leadership shift might cap the upside for gold as markets anticipate a more hawkish and independent Fed under Warsh,” Maneesh Sharma cautioned.
“Traders had dialed back expectations for a Fed rate cut. Financial markets currently price in nearly 46% odds of a rate reduction at the June policy meeting, according to the CME FedWatch tool, reducing it from over 60 % seen in the last few weeks. We might see some more downside in the coming days. Overall short term support is seen around $4650 - 4680 /Oz levels(CMP $ 4850/Oz in spot) while Chinese speculators & traders may step in at lower levels in coming days,” Maneesh Sharma told TOI.
(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)