Key Highlights
- Silver Price Drop: MCX silver for March delivery plunged significantly, trading near Rs 3.82 lakh per kg after retreating from a record high of over Rs 4.20 lakh.
- Gold Correction: Gold prices declined by nearly Rs 3,000 in early trade, settling around the Rs 1.67 lakh per 10 grams mark.
- Market Drivers: Aggressive profit-taking at elevated levels and a rebounding US dollar index were the primary triggers for the sudden decline.
- Monthly Context: Despite the Friday dip, gold remains on track for its strongest monthly performance since 1980, having gained more than 24% in January.
The commodity markets opened to a sea of red on Friday, January 30, 2026, as both gold and silver experienced a sharp pull-back. On the Multi Commodity Exchange (MCX), silver futures for March delivery saw intense selling pressure, with prices falling by more than Rs 24,000 from their peak levels reached just 24 hours prior. After the initial morning plunge, the white metal hovered around Rs 3.82 lakh per kilogram. Gold followed a similar trajectory, dropping approximately Rs 3,000 to reach a level of Rs 1.66 lakh per 10 grams, a notable shift from its recent lifetime high of approximately Rs 1.83 lakh.
Market analysts attribute this volatility to a “technical reset,” as traders who benefited from the relentless rally throughout January chose to cash out their holdings. By 10:00 AM, the market showed signs of a slight recovery from the session lows, with silver trading at approximately Rs 3,88,000 per kilogram, still down nearly Rs 11,893 for the day.
Global Factors and Geopolitical Influence
The domestic decline mirrors a softening in the international bullion markets. In global trade, spot gold fell roughly 0.9% to $5,346.42 per ounce, cooling off after hitting a staggering record of $5,594.82 in the previous session. A slight uptick in the US dollar index put additional pressure on dollar-priced commodities, making them more expensive for Indian buyers.
However, the broader sentiment remains supported by deep-seated geopolitical and economic uncertainties. Recent escalations, including renewed tensions in the Middle East and the US Federal Reserve’s decision to keep interest rates unchanged, have cemented gold’s status as a premier safe-haven asset. While the World Gold Council (WGC) has warned that these record-high prices may dampen physical jewelry demand in India, strong investor inflows into ETFs continue to provide a solid floor for the market.
The Outlook for Precious Metals
January 2026 has been a historic month for precious metals, with silver surging nearly 62% and gold marking its sixth consecutive month of gains. Analysts suggest that while today’s correction is significant, the long-term upward trend remains intact as long as prices hold above key support zones. For silver, investors are closely watching the Rs 3.70 lakh mark, while gold finds dynamic support near the Rs 1.65 lakh level.
As the trading week closes, the market remains focused on the upcoming US employment data and any further signals from the Federal Reserve, which could dictate the next leg of this extraordinary rally.
