Silver, gold prices see free fall from peak levels in futures trade

Silver futures crashed 17% to ₹3.32 lakh per kilogram, while gold tanked 9% to ₹1.54 lakh per 10 grams, tracking weak trends in the global markets and surging American currency.

On the Multi Commodity Exchange (MCX), silver futures for March delivery plummeted by ₹67,891, or 16.97%, to ₹3,32,002 per kilogram, marking its steepest fall in a single day.

The metal surged about 9% to hit a record of ₹4,20,048 per kg on Thursday, before settling at ₹3,99,893 per kg.

Similarly, gold futures also tumbled as investors booked heavy profits on the commodities bourse. The February contract nosedived by ₹15,246, or 9%, to ₹1,54,157 per 10 grams.

On Thursday, the yellow metal soared nearly 9%, to a new peak of ₹1,80,779 per 10 grams, before easing to ₹1,69,403 per 10 grams on the MCX.

Manav Modi, Commodities Analyst, Motilal Oswal Financial Services Ltd, said that silver and gold prices have hit lower circuit levels today in all formats, ‘megas’ and ‘minis’ contracts.

“…this is a strong profit booking that we’ve seen from the higher side, and ETF prices are …down by much more percentage than what we are seeing in the futures,” he said.

Gold and silver exchange traded funds (ETFs) have dropped up to 20% in the domestic markets.

According to commodities market experts, gold and silver prices cooled off amid reports that the U.S. administration is preparing to nominate Kevin Warsh to become the next Federal Reserve Chair. The former Fed Governor is considered as a monetary policy hawk.

An expert said: “Warsh could adopt a more hawkish stance strengthening the US dollar, putting pressure on precious metals.” Meanwhile, President Donald Trump on Thursday (January 29, 2026) said that he would announce a successor to Federal Reserve Chair Jerome Powell on Friday morning.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 96.60, up by 0.33%.

In the international market, silver futures on the Comex for March delivery nosedived by $19.30, or 16.87%, to hit an intraday low of $95.12 per ounce.

It touched a record of $121.78 per ounce in the previous session.

Gold futures on the Comex for April delivery also plummeted by $392.1, or 7.32 per cent, to $4,962.7 per ounce, after hitting a lifetime high of $5,626.8 per ounce on Thursday (January 29, 2026).