Gold and Silver Prices Drop in Volatile Markets

2nd February 2026

Gold and silver prices fell sharply this week after hitting record highs. Both metals experienced one of their biggest drops in decades, with notable selling pressure late January.

On 1 Feb 2026, futures trading in India showed gold and silver down about 6% each, with prices hitting lower circuit limits, indicating strong declines and volatility.

Silver has been particularly hard-hit, with dramatic drops sparking comparisons to a market "crash" rather than a mild correction.

The sell-off has also pushed related markets like the Multi Commodity Exchange (MCX) shares down sharply.

Why prices dropped

The sharp moves followed profit-taking after a long and historic rally to record highs in both metals.

In global markets, strong moves in the US dollar and expectations around monetary policy (like the Fed chair nomination) have also influenced selling pressure.

Gold spot price around ~$4,895 per ounce (with recent falls from higher levels).

Silver spot price around $85 per ounce after big swings.

Gold and silver have recently dropped sharply from recent highs, especially in the last few trading sessions — after historic rallies.

Prices remain volatile and are reacting to broader market forces like investor profit-taking and shifts in currency and monetary policy expectations.