Silver Plummets 15% and Gold Falls 7%, Spurring Global Sell-Off
By John Nada·Jan 30, 2026·3 min read
Gold and silver prices experienced significant declines, triggering a global sell-off in related stocks and funds. This volatility reflects a reassessment of market risks.
Gold and silver prices fell sharply on Friday, leading to a global sell-off in stocks and funds tied to these precious metals. According to CNBC Business, spot silver dropped 15%, settling around $98.66 per ounce, while spot gold lost 7%, trading at $5,009.46 an ounce. This sell-off extended to futures exchanges as well, with gold contracts down 5.5% in New York and silver futures for February delivery declining by 11%. The broader precious metals market reflected this downturn, with spot platinum down more than 14% and palladium falling close to 12%.
The impact of these declines was felt across global stock exchanges. The Stoxx 600 Basic Resources index in Europe, which features major mining companies, fell by 3.2%. London-listed Fresnillo, the largest silver producer, saw its shares drop by 7%. In pre-market trading in the U.S., silver miner Endeavour Silver was down 14.7%, while First Majestic Silver fell by 14.4%. Silver ETFs were not spared; the ProShares Ultra Silver fund was down 25% before market opening, and the iShares Silver Trust ETF lost 12.7%.
These moves come after a stellar rally in precious metals over the past year, driven by market volatility, a declining U.S. dollar, geopolitical tensions, and concerns about the Federal Reserve's independence. In 2025, gold and silver saw record-breaking rallies, surging 65% and 150%, respectively. Those gains extended into 2026, with silver up 37% and gold rising 15.4% year-to-date.
Investment manager Katy Stoves from Mattioli Woods pointed out that the current sell-off represents a market-wide reassessment of concentration risk. She noted that, similar to tech stocks, intense positioning in gold has led to a crowded market. "When everyone is leaning the same way, even good assets can sell off as positions get unwound,” she stated.
Toni Meadows from BRI Wealth Management remarked that gold's rise to $5,000 occurred "too easily." He highlighted that while central bank buying has supported a longer-term rally, this trend has waned in recent months. He believes that geopolitical factors, including U.S. policies and tensions with countries like China and Russia, will continue to influence the market.
FX strategist Claudio Wewel noted a "perfect storm" of geopolitical tensions has propelled precious metal prices higher this year. He referenced U.S. military posturing and speculation about the Federal Reserve's leadership as significant market influences. Investors are particularly focused on who will be nominated as the next Fed chair, following President Donald Trump's announcement regarding a successor to Jerome Powell. Wewel added that recent news has shifted market dynamics, affecting prices.
This sell-off underscores the volatility of precious metals in response to broader market narratives. As investors reassess their positions, the implications for gold and silver could be significant. The recent declines suggest that even assets previously seen as safe havens are not immune to market corrections. Understanding these dynamics will be crucial for investors navigating this turbulent landscape.