New York, Jan 31, 2026, 12:13 ET — The market has closed.
Gold prices head into the next session after a record plunge on Friday, with spot bullion suffering its sharpest daily drop since 1983. Spot gold tumbled 9.5% to $4,883.62 an ounce, while U.S. February futures closed down 11.4% at $4,745.10. Despite the selloff, gold remains on track for a monthly gain exceeding 13%. The slide came after Donald Trump tapped Kevin Warsh to lead the Federal Reserve and the dollar index rose 0.7%. Standard Chartered’s Suki Cooper described the move as profit-taking — locking in gains — driven by shifts in the dollar and real yields, or inflation-adjusted bond returns. Nicky Shiels, strategist at MKS PAMP SA, called January “the most volatile month” in precious metals. (Reuters)
The selloff came after a month of rushed buying into safe havens pushed prices to extreme levels, leaving the market jittery. Despite some profit-taking on Thursday, spot gold was still up about 24% for January and had earlier touched a record $5,594.82. David Meger at High Ridge Futures described the drop as a “dramatic sell-off” following fresh highs. The Fed held rates steady on Wednesday, and investors still expect the next cut in June. UBS raised its gold forecast to $6,200 for the first three quarters. Meanwhile, Tether announced plans to allocate 10%–15% of its investment portfolio to physical gold, and SPDR Gold Trust holdings hovered near a four-year peak. (Reuters)
The Fed narrative feeds into the broader unwind. Citi noted that gold allocations remain supported by a mix of geopolitical and economic risks, though it forecasts about half of the risk premium in bullion will dissipate by late 2026. The bank also pointed to Warsh’s nomination as a bearish factor for gold over the medium term, since it could strengthen the Fed’s political independence if he gets confirmed. (Reuters)
But the real danger lies in how quickly the reversal could happen. “Parabolic moves have hair triggers,” warned Jeff deGraaf, chairman and head of technical research at Renaissance Macro Research, noting that rapid shifts in sentiment can overwhelm fundamentals once trades become overcrowded. (Investopedia)
Gold-linked stocks took a heavy hit. The U.S.-listed gold ETF GLD plunged as much as 9.8% on Friday, marking its steepest one-day drop since 2004, according to MarketWatch. (MarketWatch)
Shares of Barrick Mining Corporation in Toronto dropped 11.33% to C$62.24 by Friday’s close, MarketScreener data shows. (MarketScreener)
Newmont dropped 11.5% to $112.30 on heavy volume, according to MarketBeat. (MarketBeat)
Gold-stock traders will want to mark their calendars: Barrick plans to release its full-year and Q4 2025 results before the market opens on Feb. 5. The company will follow up with a management webcast that same morning, according to a statement. (Barrick)
The U.S. January jobs report, set for release on Feb. 6 at 8:30 a.m. ET, is the key macro event next week. It will heavily influence rate forecasts and real yields following a month that pushed even veteran gold bulls to rethink their stance. (Bls)
