The sell-off of gold and silver on January 30, 2026, occurred when the USD strengthened after information that President Trump nominated Kevin Warsh as Chairman of the Federal Reserve, causing spot gold prices to drop by more than 12% and spot silver to plunge by more than 36% during the day.
Market reactions focused on expectations of a shift in monetary policy under the new Fed leadership, causing capital flows to shift and leading to significant volatility in the precious metals group, while also affecting investor sentiment in other asset markets.
MAIN CONTENT
The strong rise of the USD following Kevin Warsh's nomination triggered a sell-off in gold and silver.
Spot gold fell more than 12% in a day, falling into a category of rare significant declines.
Spot silver fell more than 36% in the session, described as the largest intraday drop in history.
A strong USD is the direct reason for the sharp decline in gold and silver.
Gold and silver fell sharply due to the rising USD, weakening the demand to hold precious metals, and investors reallocating their portfolios based on expectations of Fed policy changes when Kevin Warsh was nominated.
On January 30, 2026, spot gold dropped more than 12%, marking one of the sharpest declines in a single day. Spot silver fell more than 36% on the day, described as the steepest drop in decades.
The main driver comes from a stronger USD making precious metals 'more expensive' for buyers using other currencies, while also changing risk appetite as the market re-prices the interest rate path and the 'dovishness' of the Fed.
According to market participants, investors quickly adjusted their portfolios to adapt to the potential shift in monetary policy under the new term, thereby amplifying short-term selling pressure on gold and silver.
"Therefore, a Fed Chair choice may be less 'dovish', the USD recovers, and gold moves out of an overbought state have contributed to the decline in precious metal prices."
– Tim Waterer, Chief Trade Analyst, KCM
Silver recorded a historically significant drop in the day.
Spot silver fell more than 36% in the session, noted as the largest intraday drop in history, exceeding declines associated with the shock of 1980.
Did you know? The 36% drop in spot silver is described as the largest intraday drop in history, surpassing declines that occurred during the crash in 1980.
This extreme volatility is often accompanied by thin liquidity, activated stop-loss orders, and 'de-risk' behavior as investors seek to reduce portfolio risk ahead of policy information. In the context of a rising USD, speculative positions in precious metals may be forced to close quickly, widening the decline in a short time.
Crypto market: Bitcoin is quoted at 84,095.90 USD along with market cap and volume metrics.
According to data cited from CoinMarketCap, Bitcoin is priced at 84,095.90 USD, market cap 1.68 trillion USD, market share 59.18%, and 24-hour trading volume 71.31 billion USD.
The update also noted a 24-hour volume increase of 9.50% and Bitcoin price decrease of 23.52% over 90 days. These figures are sourced from CoinMarketCap.
Although the content focuses on precious metals, the inclusion of Bitcoin data indicates that investors are monitoring the intermarket correlation between the USD, traditional safe-haven assets, and cryptocurrencies. In periods of a rising USD and changing interest rate expectations, the sensitivity of risk assets to financial conditions typically increases.
Expectations of a Fed change could lead to adjustments in financial conditions and a preference for safe assets.
Many sides suggest that the market may adjust financial conditions and pivot its strategy towards prioritizing safer assets as the appeal of precious metals diminishes.
The original content mentions the research team's assessment that market participants may need to adapt to policy impacts, leading to adjustments in asset allocation. As expectations for the Fed's 'dovishness' diminish, transmission channels such as a strong USD, rising yields, and higher capital costs may pressure interest-sensitive assets.
Behaviorally, sharp drops in gold and silver often increase the demand for risk management: reducing leverage, increasing cash weight, and reconsidering the hedging role. However, the next direction still depends on macroeconomic data and the actual policy messaging from the Fed after personnel changes.
Frequently Asked Questions
Why did the prices of gold and silver drop sharply on January 30, 2026?
Due to the strengthening USD as the market reacted to President Trump's nomination of Kevin Warsh as Fed Chair, demand for precious metals decreased, triggering a portfolio reallocation based on monetary policy expectations.
What is the stated decline of gold and silver?
Spot gold fell more than 12% in a day, while spot silver fell more than 36% in the session, according to the original content describing this as a very rare and historic drop.
Which analyst commented on the reasons for the decline in precious metals?
Tim Waterer (Chief Trade Analyst, KCM) believes that the choice of Fed Chair could be less 'dovish', a USD recovery, and gold moving out of an overbought state are contributing factors to the price decline.
Does the article mention Bitcoin data, and what is the figure?
Yes. According to data sourced from CoinMarketCap: Bitcoin is at 84,095.90 USD, market cap 1.68 trillion USD, market share 59.18%, 24-hour volume 71.31 billion USD; volume increased 9.50% and price declined 23.52% over 90 days.
Source: https://tintucbitcoin.com/gia-vang-bac-giam-manh-sau-fed-doi-huong/
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