The Indian bullion market witnessed a historic crash on January 30 and 31, 2026, leaving investors and common buyers in shock. Silver prices recorded a massive drop of approximately Rs 1,00,000 to Rs 1,28,000 per kilogram in just a single day. Gold rates also followed this downward trend, slipping by nearly Rs 33,000 per 10 grams ahead of the Union Budget presentation.
What triggered this sudden price drop?
Several global and local factors combined to trigger this sharp decline. The nomination of Kevin Warsh as the next US Federal Reserve Chair strengthened the US Dollar, which put pressure on metal prices. Additionally, the Chicago Mercantile Exchange (CME) raised margin requirements for precious metals, forcing traders to sell their positions quickly to cover costs. Analysts also state that the market was “overbought” after a 71% surge in silver prices during January, leading to this natural correction.
Current rates and market status
The price drop has been significant across the board on the Multi Commodity Exchange (MCX). Traders are currently waiting for the Union Budget announcements regarding import duties before making new purchases.
- Silver Peak: Reached Rs 4.20 lakh per kg recently.
- Silver Crash: Fell to approximately Rs 2.91 lakh to Rs 3.34 lakh.
- Gold Peak: Touched a record of Rs 1.80 lakh per 10 grams.
- Gold Crash: Dropped to the range of Rs 1.47 lakh to Rs 1.50 lakh.
- Market Mood: The All India Sarafa Association reported a halt in physical trade as buyers await stability.
