Silver Rate Today: Precious Metals Witness Sharpest Correction in Decades
Precious metals markets experienced one of the most dramatic corrections in recent memory on Friday, January 30, 2026, as aggressive profit-booking followed the explosive rally that had propelled prices to unprecedented record highs earlier this month. The international gold price plummeted by over 11%, while the COMEX silver price suffered an even more severe crash, tumbling by over 31% in a single trading session.
Current Silver Price Position and Market Outlook
Following this substantial correction, the silver rate today stands approximately 35% below its recent record peak of $121.755 per ounce. Market analysts and commodity experts are now warning that this downward trajectory may not be over, suggesting that the precious white metal appears to have reached its zenith for the current cycle. Large institutional investors are expected to continue profit-taking activities in the near term, potentially exerting additional downward pressure on prices.
What Triggered the Sharp Silver Price Fall?
When questioned about the catalysts behind this sudden and severe sell-off in silver prices, Ponmudi R, CEO at Enrich Money, provided a comprehensive analysis. "The primary trigger was the nomination of Kevin Warsh as the next US Federal Reserve Chair by President Trump," he explained. "Mr. Warsh, renowned for his hawkish stance on inflation control and his strong emphasis on Federal Reserve independence, prompted a rapid macroeconomic re-pricing across global markets."
Ponmudi elaborated that this development led to a strengthening US dollar, rising real yields, and the swift unwinding of leveraged positions in both gold and silver. These metals had been viewed as overextended hedges against currency debasement. "This resulted in violent liquidation, erasing billions in market value and flushing out weak-handed investors in what can be described as a classic transition from market euphoria to exhaustion," he noted, while clarifying that this does not necessarily signal the beginning of a structural bear-market reversal.
CME Raises Margin Requirements for Gold and Silver
Anticipating further declines in silver prices, Anuj Gupta, a SEBI-registered commodity expert, highlighted a significant regulatory development. "After increasing margins for copper, the Chicago Mercantile Exchange (CME) has now raised the margin money required for trading gold and silver futures contracts," he stated.
The CME has elevated margin requirements for gold from 6% to 8%. More notably, it has increased margins for silver from 11% to 15%, a move expected to maintain sustained pressure on precious metals markets. Gupta further pointed out that the Indian jewellery industry is facing a dual challenge: soaring prices for gold and silver coupled with sluggish consumer demand.
To revitalize the jewellery business in India, market participants are anticipating a potential import duty reduction in the upcoming Union Budget for 2026. Gupta added that if such a policy change materializes, both domestic and global factors could align negatively for gold and silver prices in the near future.
Potential for Further 30% Silver Price Crash
Addressing whether the silver price rally has conclusively peaked, Amit Goel, Chief Global Strategist at Pace 360, offered a cautious perspective. "The likelihood of the silver price rally having topped out has increased significantly after the COMEX silver price closed below the $4,900 per ounce threshold," he remarked.
Goel emphasized that much will depend on the market opening for silver on the following Monday in international trading. "If it fails to reclaim the $4,900 level during morning trading sessions, then panic selling could intensify further. We may witness additional sharp selling pressure after the opening of US markets," he warned.
Expecting the aggressive selling to persist into the new trading week, Goel provided a stark assessment. "Despite the structural demand for the white metal remaining fundamentally intact, the silver price today is sitting on what appears to be a speculative bubble. The current silver rate remains significantly above its fair value, and we anticipate this sharp correction to continue in the near term."
He projected that while the upcoming sell-off may not follow a strictly linear path, a further correction of at least 30% in white metal prices from current levels is probable. "I expect silver prices to reach at least $50 per ounce by the end of June 2026," Goel predicted. On the Multi Commodity Exchange (MCX) in India, where the silver price today hovers around ₹2,92,000 per kilogram, he forecasts that the domestic silver price could decline to approximately ₹2 lakh per kilogram by the same June 2026 deadline.
Detailed Breakdown of CME Margin Increases
The CME Group is implementing substantial increases in margin requirements for Comex gold and silver futures contracts, following the most significant price slides these metals have witnessed in decades. According to an official exchange statement released on Friday, gold margins will rise to 8% of the underlying contract value from the current 6% for standard, non-heightened risk profiles. For heightened risk profiles, the margin will increase to 8.8% from the current 6.6%.
For silver futures, margin requirements will climb even more sharply. Standard margins will increase to 15% from the current 11%, while heightened risk profile margins will be raised to 16.5% from the current 12.1%. The exchange also indicated that margin requirements for platinum and palladium futures will be similarly boosted.
These changes are scheduled to take effect from the close of trading on Monday. The CME stated that the adjustments follow a "normal review of market volatility to ensure adequate collateral coverage." The practical implication is that traders wishing to engage in gold, silver, platinum, and palladium futures will need to post significantly more collateral to secure their positions and meet potential obligations.
While exchanges routinely adjust margin requirements during periods of soaring prices, steep declines, or extreme volatility, Friday's decisive move could have the additional effect of edging out smaller market participants who lack the necessary cash reserves to meet these increased deposit demands.
(With inputs from Bloomberg)
Disclaimer: This story is intended for educational purposes only. The views and recommendations expressed above are those of individual analysts or broking companies, and not of Mint. We strongly advise investors to consult with certified financial experts before making any investment decisions.
Key Market Takeaways
- Silver prices have undergone significant corrections driven by macroeconomic shifts and widespread profit-taking by investors.
- Substantial margin increases imposed by the CME are likely to maintain downward pressure on precious metals in the trading sessions ahead.
- The jewellery industry in India is confronting considerable challenges stemming from elevated silver prices, with potential relief possibly arriving via policy modifications in the forthcoming Union Budget.
