Gold & Silver Crash: MCX Sees Sharp Fall as Profit-Booking Hits Hard (Jan 2026)

Precious metals ended January with a real surprise. After a fast rally to record highs, gold and silver saw heavy profit-booking, and the drop became sharp enough to look like a “flush” move.

What happened (quick snapshot)

• MCX Gold (Feb futures): fell sharply during the session—around 9%, down to ~₹154,157 per 10g at one point. 

• MCX Silver dropped hard and touched the lower circuit near ~₹3,39,910/kg (a big single-day fall after record highs). 

• Globally, silver also saw a massive drop on Comex, adding to panic vibes. 

  
  

Simple meaning: Prices went up too fast → traders booked profits → leveraged positions unwound → the fall accelerated.

Why did gold & silver plunge? (Easy explanation)

1) Profit-booking after a record run

When a commodity rallies sharply in a short time, many traders lock profits together. That “everyone exits at once” moment creates fast candles on charts. 

2) Dollar + policy cues changed the mood

A stronger US dollar generally pressures precious metals. Along with policy headlines and Fed expectations, the mood shifted from “buy safety” to “reduce risk.” 

3) Margin-hike chatter increased pressure

Reports also pointed to margin-hike triggers (CME) during high volatility, which can force some traders to reduce positions quickly. 

What traders are watching next

• Union Budget headlines (India)

• Dollar strength + global risk sentiment

• Whether prices stabilize after the “flush” or stay volatile for a few sessions

Clean disclaimer (keep it)

This is a news explainer for education only. It is not investment advice. Commodities are volatile—use risk management and verify levels from official sources.