Metal stocks faced sharp selling pressure in today’s trading session, with several heavyweight names sliding to their lower circuit limits amid broad weakness across the sector.

Investor sentiment turned cautious as concerns over global demand, commodity price volatility and risk-off mood in equities weighed heavily on metal counters.

Nifty Metal index traded 2 per cent lower at 11,572.70 at 10.52 am, after declining over 5 per cent to 11,218.80 against the previous close of 11,827.55.

Vedanta plunged 10 per cent, reflecting intense selling interest from the opening bell. The stock struggled to find buyers through the session, underscoring the nervousness surrounding diversified metal producers.

Shares traded 4 per cent lower at ₹656.60 at 10.44 am on the NSEfalling 10 per cent to ₹613.40 against the previous close of ₹681.55.

Hindustan Copper also witnessed a steep decline, sinking 19 per cent to ₹555.10. The sharp fall added to the overall gloom in the space, as traders rushed to cut exposure in metal-linked stocks.

National Aluminum Company, or Nalcodragged 14.5 per cent to ₹329.40, near the lower circuit of ₹327.65, extending losses as aluminum stocks mirrored weakness seen in global markets.

Hindustan Zinc was not spared either, falling nearly 14 per cent to ₹543.55. Market participants said the sell-off reflects heightened uncertainty around global economic growth and fluctuations in base metal prices, prompting investors to turn defensive in cyclical sectors.

Published on February 1, 2026

Silver endured extreme volatility on Friday, plunging nearly 40 per cent from record highs above $118-$121 per ounce to around $74-$85, triggering lower circuit limits across all Silver Exchange Traded Funds (ETFs) in India.

On the Multi Commodity Exchange (MCX)silver corrected aggressively from peaks near ₹4,20,048 per kilogram to around ₹2,91,000-₹2,91,925.

“Due to the sharp decline in silver prices, with silver futures on MCX hitting lower circuit levels amid global commodity sell-off and profit-booking, all Silver ETFs across various mutual fund houses are likely to open at the lower circuit on the stock exchanges,” according to a market advisory sent to investors.

As per exchange rules, ETFs have a circuit limit of 20 per cent based on the previous trading day’s closing price.

The dramatic selloff came after President Trump’s nomination of Kevin Warsh as the next Federal Reserve Chair. Warsh, known for his hawkish stance on inflation, prompted a strengthening US dollar and rising real yields, triggering liquidation of leveraged positions across precious metals.

Kaynat Chainwala, AVP – Commodity Research at Kotak Securities, noted that “silver has corrected more sharply than goldwhich is typical following outsized gains given its higher volatility and exposure to industrial demand.” She identified strong support in the $95-$102 range.

Nikunj Saraf, CEO of Choice Wealth, highlighted that silver had hit ₹4,20,048 per kg on Thursday before the crash. Indian ETFs like Nippon India Silver plunged 14 per cent in a single day, mirroring the global selloff where spot silver fell 5.7 per cent to $109.55 per ounce.

Rajkumar Subramanian, Head – Product & Family Office at PL Wealth, noted that silver had exhibited a remarkable rally over the past year, rising from around ₹1.5-1.6 lakh per kg in early 2025 to above ₹4 lakh per kg by late January 2026, implying a 165-170 per cent gain.

“However, silver remains a volatile metal, with historical annualized volatility often in the 25-35 per cent range, higher than gold, and the sharp run-up increases the risk of near-term corrections,” he said.

Ponmudi R, CEO of Enrich Money, characterized the correction as “a leverage flush, sentiment reset, and tactical adjustment rather than a trend reversal.”

He identified critical support at $74-$70, aligning with the 50-day EMA, and noted that stability above this base could facilitate a rebound toward $82-$92-$100+. On MCX, he placed stronger support around ₹2,51,000-₹2,52,000.

Despite the sharp decline, analysts maintain that structural drivers remain intact, including persistent supply deficits and surging industrial demand from green energy, electric vehicles, AI, electronics, and solar sectors. The medium-term outlook remains constructive, though near-term volatility is expected to persist.

Published on February 1, 2026

gold witnessed one of its sharpest corrections in decades on Friday, plummeting nearly 16 per cent from record highs above $5,480-$5,626 to trade around $4,745-$4,887 per ounce, as aggressive profit-booking followed the nomination of Kevin Warsh as the next US Federal Reserve Chair.

On the Multi Commodity Exchange (MCX)gold retreated from peaks near ₹1,80,000 per 10 grams to stabilize around ₹1,49,500-₹1,49,653.

The primary trigger was President Trump’s nomination of Warsh, known for his hawkish stance on inflation control and emphasis on Fed independence. The announcement prompted a rapid macro re-pricing with the US dollar strengthening and real yields rising, leading to violent liquidation of leveraged positions in precious metals.

“Gold witnessed sharp selling pressure after margin hikes triggered aggressive profit booking in CME, where prices corrected from the recent peak of $5,500 to near $5,000,” said Jateen Trivedi, VP Research Analyst at LKP Securities. He noted that MCX gold slipped from record highs above ₹1,80,000 to intraday lows near ₹1,55,000.

Kaynat Chainwala, AVP – Commodity Research at Kotak Securities, explained that bullion prices faced headwinds from a stronger US dollar and fears that Warsh, widely viewed as an inflation hawk, could tighten monetary policy. “A sharp correction in the Nasdaq and the risk of a broader yen carry-trade unwind pose the biggest downside risks to the gold rally,” she said.

Nikunj Saraf, CEO of Choice Wealth, described the 14 per cent plunge in Gold ETFs as “classic profit-taking after Thursday’s record highs on MCX.” He noted that spot gold fell 3.9-5 per cent to $5,183 per ounce.

Despite the severity of the pullback, analysts maintain that the secular bullish structure remains intact. Ponmudi R, CEO of Enrich Money, stated that core drivers persist including “relentless central bank gold accumulation, enduring geopolitical uncertainties and fiat diversification trends.” He characterized the correction as “a healthy reset purging excess leverage and speculative froth.”

Chainwala recommended a buy-on-dips strategy, with gold expected to find support in the $5,000-$5,100 zone. Trivedi expects CME gold to remain volatile in the $4,800-$5,200 range, while MCX gold is likely to oscillate between ₹1,58,000 and ₹1,70,000.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that “the sharp correction in gold and silver, if it persists, can draw investors away from precious metals to equity.”

Published on February 1, 2026

Silver prices collapsed 19 per cent to Rs 3.12 lakh per kg in the national capital on Saturday, while gold plunged 2 per cent to Rs 1.65 lakh per 10 grams, as investors booked profits amid a global selloff triggered by a stronger US dollar.

According to the All India Sarafa Association, silver nosedived Rs 72,500, or 18.85 per cent, to Rs 3,12,000 per kilogram (inclusive of all taxes), marking a second straight day of heavy losses, wiping out much of this week’s record gains.

The white metal had touched a record of Rs 4,04,500 per kg on Thursday before plunging 5 per cent in the previous session.

Monthly Gains Intact

Silver prices, however, closed January with sharp gains, soaring Rs 73,000, or 30.5 per cent, from Rs 2,39,000 per kilogram recorded on December 31, 2025, despite a steep fall in two consecutive sessions to Saturday.

Gold Losses Sheen

Gold prices also lost sheen, sliding Rs 3,500, or 2.07 per cent, to Rs 1,65,500 per 10 grams (inclusive of all taxes). The metal of 99.9 per cent purity plunged 7.6 per cent to Rs 1,69,000 per 10 grams in the previous trade after hitting a record of Rs 1,83,000 per 10 grams on Thursday.

In January, gold prices rose by Rs 27,800, or 20.2 per cent, from Rs 1,37,700 per 10 grams recorded at the end of last year.

dollar pressure

Analysts said the sell-off was driven by a rebound in the dollar, which weighed on gold and silver prices.

The dollar index rose 0.9 per cent to close at 97.15 after US President Donald Trump nominated Kevin Warsh, a former Fed governor and known proponent of a strong dollar, to head America’s central bank, the Federal Reserve, dented the appeal for the safe-haven assets, they added.

Global Market Carnage

The carnage in both silver and gold was even more severe in global markets.

On Friday, spot silver slumped USD 31.44, or 27.07 per cent, to close at USD 84.70 per ounce, after plunging as much as 36 per cent intraday to USD 73.30 per ounce, while gold slid by USD 530.53, or 9.83 per cent, to settle at USD 4,865.35 per ounce.

During the session, the yellow metal tanked USD 689.92, or 12.8 per cent, to hit an intraday low of USD 4,683.10 per ounce.

Silver and gold had notched all-time highs of USD 121.45 and USD 5,595.02 per ounce on Thursday, driven by safe-haven demand.

Expert View

Sandip Raichura, CEO of Retail Broking and Distribution & Director, PL Capital, said, “Warsh’s nomination triggered profit booking in Asia, which then spread to the rest of the world”.

Barring gold, where we believe fundamental strength will continue for years to come, though, of course, volatility will remain, other precious metals have seen some froth build up, he said.

“Silver had a non-linear run and had reached severely overbought levels. When profit booking begins, drawdowns have historically been significant, and Friday was no different, despite no major actual moves in the US dollar,” he added.

Key Support Level

Raichura further stated that “We believe silver may lose further ground but could find a base around the USD 60 per ounce level, where it would still be trading at nearly four times the cost of production”.

On the outlook, he said, Gold is expected to continue moving upward in the medium term towards the USD 6,000 and subsequently the USD 8,000 level over the next two years.

Healthy Correction

Gaurav Garg, Research Analyst at Lemonn Markets Desk, said the bullion has delivered exceptional gains this month, and such pullbacks are healthy consolidations rather than trend reversals.

“However, elevated prices have begun to weigh on physical demand, particularly in price-sensitive markets like India, suggesting near-term volatility may persist even as the broader bullish outlook for bullion stays intact,” he added.

Budget Hopes

Meanwhile, jewelers expect policy support ahead of the Union Budget to revive the demand.

The Union Budget for 2026-27 will be presented in Parliament on February 1.

Published on January 31, 2026

The sell-off echoed the 1980 “Silver Thursday” collapse, as investors booked profits amid shifting global macroeconomic signals.

The precious metals complex had its worst day since March 27, 1980, while gold and silver prices recorded their largest single-day decline in the Indian futures market on Friday.

Silver futures dropped below ₹3 lakh a kg, while spot prices are expected to open below the mark on Sunday in Mumbai when the Indian Bullion and Jewelers Association announces the rate. Gold prices will likely be below ₹1.5 lakh per 10 gm.

Gold dropped by 9 per cent and silver by over 26 per cent in the global market after US President Donald Trump’s move to appoint Kevin Warsh as the next US Federal Reserve chief. Warsh is seen as a hawkish policymaker who will likely prioritize inflation control and maintain tighter monetary conditions.

The decision spooked the precious metals market abroad and in India, where gold dropped by 17.5 per cent, or ₹3,266 per gm, on MCX, and silver plunged by 27 per cent, or ₹1.08 lakh per kg.

Reminding Silver Thursday

Gold, which soared to $5,608 an ounce earlier in the week, plunged to $4,887 at the end of trade on Friday. On COMEX, gold April futures ended at $4,763. On MCX, gold April futures closed at ₹1,53,119 per 10 gm, down from ₹1,85,779 on Thursday.

Silver, which peaked at $122 an ounce earlier in the week, plunged to $84.63 an ounce. Silver March futures closed even lower at $78.32 an ounce. On MCX, silver March futures closed at ₹ 2,91,925 per kg, down from ₹ 3,99,893 on Thursday.

The fall in gold and silver globally was reminiscent of Silver Thursday on March 27, 1980, when silver plunged after running up to $50.35 an ounce. Gold, too, had peaked at $850 per ounce then. Then, the white precious metal lost 50 per cent over four days as COMEX curbed purchases of the commodity. Indian commodities market came up only after 2002.

The Mumbai spot market rates are not published on Saturdays and Sundays.

WGC ETFs data

Traders said Warsh’s appointment triggered hopes of higher interest rates to boost US bond yields and strengthen the dollar. A strong dollar and higher bond yields are more attractive to investors compared to gold and silver. This led many investors who had invested in exchange-traded funds (ETFs) to book profits.

Data from the World Gold Council showed assets under ETF management increased by 260 per cent between January 1, 2024, and January 1, 2026, to $558 billion from $214.5 billion. Investments last year were $88.56 billion, against investors cashing out $14 billion in 2023.

Gold and silver’s rally over the past two years led to speculators betting on the precious metals complex. Despite the black Friday for the precious metal complex, gold is still up 13 per cent this year, and silver is up 18.5 per cent. Platinum, which lost nearly 19 per cent at $2,121 an ounce, had its rise cut to 2.5 per cent for the year. At $1,703, palladium lost 15 per cent on Friday but is still up over 3 per cent so far in 2026.

The precious metals complex had gained ground due to geopolitical crises, with the Iranian unrest adding to the latest surge, as well as the US trade standoff with other countries. Geopolitical crises continue, but the US Fed Chief appointment and hopes of a rise in the dollar have changed the scenario, traders said.

Published on January 31, 2026