NEW YORK, Jan 30, 2026, 16:39 EST
- Gold is on track for its sharpest daily drop since 1983, while silver faces what could be its worst day ever.
- Dollar bounces back after Warsh nomination shakes up rate outlook
- January remains on track to be a strong month for bullion, even with the recent drop
Gold and silver prices plunged on Friday, sending gold toward its sharpest daily drop since 1983 and silver toward its biggest one-day fall ever, after U.S. President Donald Trump chose Kevin Warsh to lead the Federal Reserve. By 1:57 p.m. ET, spot gold had tumbled 9.5% to $4,883.62 an ounce, down from a record $5,594.82 hit Thursday. Silver collapsed 27.7% to $83.99, while platinum dropped roughly 19% and palladium nearly 16%. U.S. gold futures closed 11.4% lower. The dollar index, which tracks the greenback against major currencies, gained 0.7% amid the selloff. Standard Chartered’s Suki Cooper attributed the slide to profit-taking as the dollar and “real yields” — inflation-adjusted bond returns — moved. MKS PAMP strategist Nicky Shiels called January “the most volatile month in precious metals history,” pointing to $4,600 gold and $80 silver as potential support levels. (Reuters)
The drop is significant since it follows a frenzied month that drew in momentum traders and pushed even the most cautious investors to jump in. Moves like this can quickly wipe out leveraged positions and shift the mood heading into February.
Gold doesn’t yield interest, which weighs on it when inflation-adjusted rates climb or the dollar strengthens. That pattern has played out today, with the dollar’s rebound hitting dollar-denominated prices especially hard.
Warsh, a former Fed governor known for his frequent criticism of the central bank, is set to take the helm in May if confirmed. Traders are scrambling to gauge how his leadership could affect the speed of interest-rate cuts and the intensity of the White House’s push on the issue.
Friday’s drop felt more like a correction following record highs, rather than a gradual slide. Silver took a steeper, more chaotic dive, plunging after hitting $121.64 the day before, then rebounding sharply.
The Financial Times reported precious-metal mining stocks dropped in step with bullion prices, while the Shanghai Futures Exchange froze trading accounts to curb speculation following the recent spike and pullback. (Financial Times)
RTE reported gold dropped roughly 4.2% in early trading but remains on track for its strongest month since 1982 despite today’s decline. (RTÉ)
The road ahead isn’t straightforward: Warsh still requires Senate confirmation, and with inflation data, dollar fluctuations, and crowded trades in play, prices could swing sharply both ways. Should the dollar continue its ascent and real yields rise, the downside levels analysts mention might materialize sooner than anticipated.
For now, traders face a harsh reminder: this market can shift on just one headline, and January’s rally wasn’t without its costs.
