Precious metals suffer historic one-day collapse, trillions lost
Precious metals markets experienced an unprecedented plunge on January 30, with prices retreating sharply from record highs reached just days earlier, reports a Qazinform News Agency correspondent.
Gold futures for February delivery tumbled 11% to about $4,745 per ounce, marking the steepest one-day drop in decades after a surge above $5, 500 late last week. Silver plunged over 31% to roughly $78.50 per ounce, constituting its largest single-day loss in 46 years as momentum reversed violently.
Platinum and palladium also slid significantly, with platinum falling toward $2,100 and palladium dipping near $1,700. Combined market capitalization losses in precious metals were estimated in the trillions as price momentum abruptly shifted.
Market participants attributed the rout to a sudden recalibration of monetary policy expectations following the announcement of a nominee for the U.S. Federal Reserve chair, which strengthened the U.S. dollar and undercut the inflation-related rationale behind the recent rally.
Margin requirements on futures contracts have since been raised to contain volatility. Equity markets also weakened, reflecting broader risk-off sentiment. Analysts cautioned that the extreme volatility could signal either a deeper correction or a temporary reset after an extended bull run in precious metals, with future direction hinging on macroeconomic data and central bank policy clarity.
Earlier, Qazinform News Agency reported that gold futures had risen by more than 2%, surpassing $5,100 per troy ounce.
