- A sharp sell-off in precious metals linked to Federal Reserve leadership change.
- Spot gold fell over 12%, hitting historic lows.
- Spot silver’s 36% intraday drop marked a historic decline.
A dramatic sell-off in precious metals occurred on January 30, 2026, as spot gold and silver prices plummeted sharply due to a strengthened US dollar.
The market reacted to Kevin Warsh’s Federal Reserve chair nomination, causing widespread concern about central bank policies, impacting global finance.
Gold and Silver Plummet with Dollar Spike
The sudden price drops in gold and silver were attributed to the strengthening US dollar as financial markets reacted to President Trump’s nomination of Kevin Warsh. Gold prices dropped over 12%, marking one of the largest single-day declines in history. Meanwhile, silver prices saw a drop of more than 36%, which was the steepest plunge recorded in decades.
The strengthening US dollar led to decreased demand for precious metals as investors shifted their focus. In response to the changing economic landscape, market participants began adjusting their portfolios to accommodate the anticipated shift in Federal Reserve policy under Warsh’s leadership. This shift contributed to the rapid decline in gold and silver prices.
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Market analysts and traders reacted strongly to the announcement. Tim Waterer, Chief Trade Analyst, KCM, remarked, “So, a potentially less dovish Fed Chairman pick, a rebound in the dollar, and gold giving way to overbought conditions have contributed to the decline in the price of the precious metal.”
Silver’s Historic Decline: Largest Drop Since 1980
Did you know? The spot silver’s 36% drop marked the largest intraday fall in its history, surpassing declines seen during the 1980 crash.
Bitcoin (BTC) is currently priced at $84,095.90 with a market cap of $1.68 trillion, controlling 59.18% of the market. The 24-hour trading volume reached $71.31 billion, a 9.50% increase. BTC’s price has declined 23.52% over 90 days, according to CoinMarketCap.
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 00:39 UTC on January 31, 2026. Source: CoinMarketCapThe Coincu research team indicates possible financial conditions adjustments as market players navigate policy impacts. Historical trends suggest a potential shift in investment strategies toward safer assets given the declining appeal of precious metals.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/markets/gold-silver-price-drop-fed-change/
