Silver prices still on track for 58% surge in January despite today's 7% crash

Silver prices came under heavy selling pressure in Friday’s trading session, January 30, impacted by a firm US dollar and profit-taking by investors after a sustained rally that pushed the white metal to multiple record highs, making it the top-performing asset in early 2026.

In the international market, spot silver prices plunged 7.4% to the day’s low of $107 per ounce. In the domestic market, the March delivery contract on MCX also saw a sharp reversal, falling ₹34,192 (8.55%) per kilogram to ₹3,65,701.

If the sell-off sustains, it will end the five-day rally on MCX. To be precise, silver prices had already seen a sharp correction during the late trading hours of Thursday, when prices dropped ₹20,155 from the intraday high to settle at ₹399,893.

Taking today’s intraday low into account, silver has declined ₹54,347, or 15%, from the record high of ₹42,00,48. Meanwhile, gold prices, too, dropped ₹21,529 per 10 grams from the record highs.

What triggered the sharp reversal in silver rate today?

Despite ongoing geopolitical and trade concerns supporting safe-haven assets, strength in the US dollar appeared to trigger a sharp sell-off in precious metals. The US dollar index, which measures the currency against six major peers, rose 0.6% to 96.73 in today's trade, making dollar-priced commodities more expensive for holders of other currencies.

The greenback, on Wednesday, spiked 0.54%, the biggest intraday surge in four months, after the US Federal Reserve left interest rates unchanged.

Despite showing strength lately, the dollar is still on track to close the month down 1.8%, as shifting policies in Washington weighed on investor confidence in the reserve currency.

Another factor contributing to the decline in prices was US President Donald Trump’s comments on the next Fed chair. On Thursday, Trump said he intends to announce his pick to replace Fed Chair Jerome Powell on Friday, with speculation intensifying that the nod will go to former Fed Governor Kevin Warsh, Reuters reported.

Warsh, a former Fed governor, is one of four finalists on Trump’s shortlist for the next central bank leader. Markets are factoring in Warsh’s historically hawkish stance and dialling back expectations for policy easing.

Gold and silver, as non-yielding assets, will lose their appeal in a rising interest rate environment.

Silver prices remain up 58% despite recent pullback

Although silver prices have come off recent peaks, they are on track to close January with a robust 58% gain, provided today’s sell-off does not deepen further.

For context, silver crossed the ₹1 lakh mark on the MCX in October 2024 and took 14 months to reach the next milestone of ₹2 lakh on December 12, 2025.

It then took just 25 days to reach the ₹3 lakh mark on January 19. The next ₹1 lakh jump came even faster, with silver hitting ₹4 lakh in just nine trading sessions in the previous session. Despite short-term pullbacks due to overbought conditions, analysts believe silver’s broader uptrend remains strong.

Ponmudi R, CEO of Enrich Money, said, "The sharp rally in silver has pushed momentum indicators into extreme overbought zones, which is leading to heat-led consolidation and rapid intraday pullbacks. However, the broader trend remains decisively bullish, with the steep rising channel intact and major EMAs providing strong dynamic support."

"The ₹3,55,000– ₹3,60,000 zone remains a critical base. Immediate resistance is seen near ₹4,15,000– ₹4,20,000, with potential extension toward ₹4,25,000 if momentum sustains. Dips continue to offer accumulation opportunities for positional participants," he further added.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.