Gold, Silver Plunge as Trump Nominates Fed Chair

On January 30, 2026, the silver market experienced its most significant drop since 1980, plummeting by 30% on the worst day in decades. Gold also saw heavy losses, dropping approximately 9%.

This market turmoil followed US President Donald Trump's nomination of Kevin Warsh to be the new Federal Reserve Chair. The nomination helped to alleviate concerns about the Federal Reserve's independence, but also led to a surge in the value of the US dollar, which weighed heavily on precious metal prices.

Spot silver dropped 28% to $83.45 per ounce, nearing its lowest point of the day. Silver futures also saw a sharp decline of 31.4%, closing at $78.53. Meanwhile, spot gold fell by 9%, trading at $4,895.22 per ounce, and gold futures dropped 11.4%, closing at $4,745.10.

The sell-off was exacerbated as investors who had earlier purchased precious metals rushed to cash out and lock in profits. The rise of the US dollar made it more expensive for foreign investors to purchase gold and silver, further compounding the negative impact on the metals market. The dollar index, meanwhile, remained strong, trading about 0.8% higher than previous levels.

Market analysts, including Matt Maley of Miller Tabak, noted that the sell-off appeared to be a result of forced selling, triggered by leverage in the silver market and a significant drop in prices. Kevin Hassett, former chairman of the National Economic Council, had long been considered a potential candidate to replace Jerome Powell as Federal Reserve Chair. However, Kevin Warsh has recently emerged as the front-runner, with his hawkish stance on monetary policy appealing to investors concerned about the dollar's stability.

Experts predict that the nomination of Warsh could stabilise the dollar and reduce concerns about a prolonged decline in the dollar's value. However, they caution that a strong dollar could further hinder the appeal of precious metals as a safe-haven asset.

In 2025, both gold and silver reached historic highs, driven by global uncertainties, geopolitical tensions, and concerns over the Fed's independence. Despite these challenges, experts suggest that precious metals may face a period of market correction in the coming months.

Gold prices in Thailand saw unprecedented fluctuations on January 30, 2026, adjusting a total of 75 times throughout the day. By the close of trading, gold prices had dropped by 6,100 baht compared to the previous day. The price of gold bars finished at 75,400 baht and gold ornaments at 76,200 baht.

The initial sharp decline of 2,550 baht was followed by continuous price adjustments throughout the day. This drop came after gold had reached an all-time high of over 81,000 baht per ounce the day before. The primary drivers of this drop were large-scale profit-taking and a correction in global gold prices (Gold Spot), which fell to around 5,300-5,400 dollars per ounce. Additionally, fluctuations in the Thai baht added pressure to the market.

Most analysts agreed that this was a major correction rather than a permanent downward shift, with key support levels in Thailand seen around 75,000-76,000 baht per ounce.

Key factors influencing the market included:

• Panic Selling and Profit-Taking: MTS GOLD analysts indicated that after gold prices had risen above 5,600 dollars per ounce, the market entered an "overbought" phase. This led to a heavy sell-off as prices started to lose momentum, turning into panic selling.
• US Dollar Strength: Huasengheng analysis noted that the US dollar’s strength, supported by US Treasury Secretary Scott Bessent's reaffirmation of a "strong dollar" policy, triggered investors to sell gold and shift into dollars. The DXY index remained steady at 96.16.
• Liquidity Crunch: According to Investing.com, this sell-off might also be due to a "sell everything to raise cash" phenomenon, where institutional investors liquidated gold to meet margin calls due to significant declines in stock and cryptocurrency markets.
• SPDR Gold Trust Selling: The SPDR Gold Trust, the world’s largest gold fund, reported selling 3.43 tons of gold in a single day. This move negatively affected market sentiment, causing retail investors to follow suit in selling their holdings.

The market remains under pressure, with analysts predicting further volatility in the short term.