Metals Market Crash 2026 hit hard today as silver, gold, and copper saw capitulation-style selling after a month-long melt-up.
30.01.2026: Today’s “crash” in the metals market (January 30, 2026) is being described by many traders as a “capitulation event” or a “technical reset.” Essentially, the market “discovered gravity” after a month of vertical, record-breaking growth
DAMAGE TODAY :
| Asset | Performance (Approx.) | Note |
| Silver | -15% to -17% | The worst single-day drop for silver in 15 years. |
| Gold | -7% to -8% | Broke back below the $5,000/oz psychological mark. |
| Copper | -3% to -5% | Pulled back after breaching $14,000/tonne yesterday. |
| Nifty Metal Index | -5% | Led by Hindustan Copper (-10%) and Vedanta (-8%). |
Here is the breakdown of why the sector took such a heavy hit today:
1. The “Warsh Effect” (The Main Trigger)
The biggest catalyst was President Trump’s announcement that he intends to nominate Kevin Warsh as the next Chair of the US Federal Reserve.
- The Logic: Warsh is viewed as a “policy hawk.” Markets expect he will be less aggressive with interest rate cuts than previously hoped.
- The Impact: This immediately boosted the US Dollar Index (DXY). Since most metals are priced in dollars, a stronger dollar makes them more expensive for global buyers, leading to an automatic sell-off.
2. Extreme Profit Booking
Before today, metals weren’t just “up”—they were in a historic “melt-up.”
- Silver had surged over 60% in January alone, and Gold was up nearly 30%.
- Yesterday (January 29), many metals hit all-time highs (Gold at ~$5,600/oz, Silver at ~$121/oz, and Copper at ~$14,500/tonne).
- Today, investors hit the “sell” button simultaneously to lock in these massive gains, especially as the month comes to a close.
3. Averted US Government Shutdown
Uncertainty often drives investors toward “safe-haven” assets like gold. However, news broke that a bipartisan deal was reached to avert a US government shutdown. This “relief” removed one of the primary reasons investors were holding gold, causing a sharp exit from the trade.
4. Technical and Margin Issues
- LME Technical Glitch: The London Metal Exchange (LME) faced a one-hour technical delay today, which created confusion and panic among traders already on edge.
- Margin Hikes: The CME (Chicago Mercantile Exchange) raised margins on copper trades by 20%, forcing some traders to liquidate their positions because they could no longer afford the “down payment” required to hold them.
The Bottom Line: Most analysts view this as a “healthy correction” rather than a change in the long-term trend. The metals were “overbought,” and the Fed news simply provided the excuse the market needed to cool down
This article is for informational purposes only.Content for this article was developed with the assistance of Gemini, a large language model from Google
Disclaimer: This article provides general information based on current industry and political / trade trends as of early 2026 and it’s not financial advice . We are not SEBI-registered investment advisors, and this content does not constitute investment advice. Consult your financial advisor before making any investment decision.