Epic crash! Silver plunges 35% below $75, gold drops 12% and falls below $4700. Analysts: The precious metals feast is over.

As the new year 2026 begins, the precious metals market is hit hard, with gold and silver plunging simultaneously, rewriting the worst single-day records in decades. A shocking “gold-silver double kill” market event officially unfolds, shocking investors worldwide.
(Background recap: Is the silver shortage narrative about to be rewritten? Peter Brandt warns: miners are wildly hedging, excess supply risks are accumulating)
(Additional background: Gold and silver crash together! Silver plunges 20% in one day, gold drops 8%, is the bull market in precious metals coming to an end?)

Table of Contents

• Silver drops 35%, largest single-day decline in history
• Gold crashes over 12%, sets worst record since 1983
• Multiple factors stacking up, triggering leveraged liquidations and profit-taking
• Analyst: Super bull market may be ending, short-term cautious observation recommended

The slaughter in the precious metals market continues! Silver and gold plummet in tandem, with the depth and speed of the decline catching the market off guard. Silver drops over 30% in one day, gold falls more than 10%, both rewriting their worst single-day performances in decades, becoming one of the most shocking financial market events since the start of this year.

Silver drops 35%, largest single-day decline in history

Market data shows that spot silver rapidly retraced from its recent high of $120, with a maximum intraday drop of 35%, and the price once fell below $75 per ounce.

This sharp decline marks the largest single-day drop in silver on record. Previously, silver had surged wildly driven by industrial demand, inflation expectations, and speculative capital, but now it has reversed quickly, causing significant impact on short-term investors.

Gold crashes over 12%, sets worst record since 1983

Spot gold also cannot escape the heavy decline. The price fell sharply from a high above $5,600 per ounce, with a daily drop exceeding 12%, and at one point dipped below $4,700 per ounce.

This decline has made gold experience its most severe single-day drop since 1983, officially ending market optimism that it “only rises and never falls.”

Multiple factors stacking up, triggering leveraged liquidations and profit-taking

Market analysis indicates that this plunge in gold and silver is not caused by a single event but is the result of multiple factors fermenting simultaneously.

First, the excessive gains earlier were a key trigger. Over the past few months, gold has risen 70% to 80%, and silver has doubled, attracting large amounts of leveraged funds, trend funds, and retail investors chasing high prices. When prices oscillate at high levels and momentum weakens, a wave of profit-taking quickly triggers chain liquidations.

Second, U.S. President Trump’s nomination of Kevin Warsh as Federal Reserve Chair was seen by the market as a hawkish move, easing fears of extreme monetary easing. After the news was announced, the dollar index rebounded, exerting clear pressure on dollar-denominated precious metals.

From a technical perspective, gold and silver had already been in extremely overbought zones. Multiple technical indicators showed RSI staying above warning levels for a long time, and the gold-silver ratio once dropped to a rarely seen low. Once bullish momentum recedes, bears quickly step in, and the decline accelerates in an avalanche-like manner.

Analyst: Super bull market may be ending, short-term cautious observation recommended

Financial website InvestingLive analyst Adam Button commented on January 31 that the “feast phase” of the precious metals market has ended. He described the ongoing super bull market in gold and silver since late 2025 as “unprecedented.”

Regarding the future of gold, Button believes that prices are unlikely to truly break below $4,000 per ounce. If that level is tested, central banks, institutional investors, and high-net-worth groups might step in heavily. However, until the trend becomes clearer, he prefers to remain cautious and does not recommend overly aggressive trading.