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On January 30, 2026, silver and gold prices saw dramatic declines following President Donald Trump's nomination of Kevin Warsh for the next chair of the Federal Reserve.
Spot silver dropped 30% to $80.55 an ounce, while spot gold tumbled 10% to $4,812.71 an ounce. The news triggered concerns about the independence of the Federal Reserve, which contributed to the sharp sell-off in precious metals.
The dollar index increased by approximately 0.8%, making gold and silver more expensive for foreign investors.
This added pressure on the prices of precious metals, as the stronger dollar diminished the appeal of these assets as alternatives to the U.S. currency. Gold futures also fell by 9.1% to $4,980, falling below the critical $5,000 mark.
The sell-off was exacerbated by what analysts described as 'forced selling.' As traders raced to book profits, particularly those who had invested heavily in the metals recently, the market faced significant volatility.
Matt Maley, an equity strategist at Miller Tabak, noted that much of the selling pressure was likely due to margin calls resulting from the rapid decline in prices.
Both the ProShares Ultra Silver fund and the iShares Silver Trust ETF experienced significant losses, with the former plunging over 62% and the latter losing 31%.
These ETFs faced their worst days on record as the market reacted to Warsh's nomination and the subsequent fluctuations in precious metals prices. Meanwhile, Coeur Mining, a silver mining company, saw its stock lose 17%, reflecting the broader market's unease.
Despite the recent downturn, gold and silver had experienced remarkable rallies in 2025, with gold prices rising 66% and silver prices soaring by 135% throughout the year.
Analysts pointed out that the previous year's gains had led to concentrated positions in precious metals, which ultimately faced a reckoning as the market reassessed risk.
While the recent decline raises questions about the future of precious metals, some analysts believe the longer-term outlook remains positive.
Concerns about global geopolitical tensions and the potential for further dollar weakness may continue to support gold and silver prices. However, the immediate market reaction to Warsh's nomination highlights the sensitive nature of precious metals to changes in Federal Reserve leadership and monetary policy.
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