It’s not just gold and silver, but almost all major metals have melted away their recent gains on Friday (January 30). So far, 2026 has been the year of metals.
We have seen massive price spikes across nearly every commodity. But that rally stumbled today. Analysts cite possible profit booking, while others believe the next move will depend on who becomes the next US Federal Reserve chair. In Chennai, 22-carat gold dropped by Rs 600 per gram, and silver fell by Rs 10 per gram. Despite the ongoing global demand for gold, jewellery retailers are under pressure due to wild price volatility.
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Indian ETFs weren’t spared either. Gold and silver exchange-traded funds (ETFs) fell sharply on January 30 as prices of precious metals plunged after a record-breaking run. Nippon India GoldBees slumped around 8 per cent to trade at Rs 135 per unit, while Tata Gold ETF dropped nearly 7 per cent to Rs 16. Among silver ETFs, Nippon India ETF SilverBees fell 10 per cent, with similar declines across the entire segment.
The meltdown wasn’t limited to precious metals. After weeks of rallying, base metals also faced heavy selling. National Aluminium Company (NALCO), which surged nearly 80 per cent over the last three months, plunged 9 per cent on Friday.
Hindustan Copper, up 120 per cent during the same period, also fell 9 per cent. Hindustan Zinc, the world’s largest integrated zinc producer and among the top five silver producers globally, saw a 10 per cent drop.
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The sharp global decline in precious metal prices comes amid speculation around the next US Fed Chair appointment. According to Bloomberg, former Fed governor Kevin Warsh could be American President Donald Trump’s choice.
Trump has repeatedly stated he prefers a Fed chair who supports aggressive rate cuts — from the current 3.5 per cent to 3.75 per cent range down to as low as 1 per cent. Warsh, who served from 2006 to 2011, is known for his accommodative stance.
Whether it’s profit booking or Fed uncertainty driving the slide, one thing is clear — it’s time for investors to stay cautious with metal positions. Chasing short-term gains could turn painful if volatility continues.
(Disclaimer: This content is for informational purposes only and does not constitute investment advice)
