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
