The precious metals market witnessed a dramatic turn of events on January 29, 2026, as gold and silver prices plummeted, leaving investors stunned. But here's the shocker: the 'safe haven' assets crashed, with gold losing a staggering $3.4 trillion in value and silver sinking 12% from its recent record highs.
On Thursday, gold and silver took a nosedive, with gold dropping to $5,100 per ounce, a decrease of almost $500. This sudden fall came as a surprise, especially after gold reached a peak of $5,600 per ounce just a day earlier. And silver, the industrially valuable metal, wasn't spared either, plunging by 11.9%.
But what caused this unexpected crash? The answer lies in the tech industry. Microsoft, a tech giant, led the decline with a 11.9% drop after its quarterly earnings revealed a slowdown in its cloud computing and AI segment. This sparked a chain reaction, causing a slump in major US AI and tech stocks, and ultimately impacting the precious metals market.
And this is where it gets interesting. Despite the crash, silver had been on an impressive run, reaching over $121 per Troy ounce in January, a 68% monthly gain—its strongest ever outside of December 1979. But as fears of an AI bubble burst grew, with companies like Oracle and Nvidia also taking hits, silver's price sank to $107 per ounce.
The market's volatility is a key concern, as Ole Hansen, a commodities analyst, points out. As prices swing wildly, liquidity suffers, and banks and market makers find it challenging to manage risk. This, in turn, leads to reduced liquidity and even more volatility, creating a vicious cycle.
The situation is further complicated by the limited trading volumes, as Simon Biddle, a precious metals expert, explains. With banks being cautious about their balance sheets, trading volumes have decreased, adding to the market's instability.
In the midst of this turmoil, base metals and crude oil prices also took a hit, influenced by China's real estate policy changes and rumors of US-Iran tensions. Meanwhile, the US Dollar showed signs of recovery after a sudden plunge earlier in the week.
As the dust settles, investors are left wondering: is this a temporary setback or a sign of a broader market trend? The precious metals market, known for its volatility, continues to keep investors on the edge of their seats. And the question remains: what's next for gold and silver?
Adrian Ash, a renowned research director at BullionVault, provides valuable insights into the precious metals market. With over 20 years of experience, his analysis is sought after by top financial publications worldwide. But remember, the market's unpredictability means that any investment decision comes with inherent risks. Stay informed, and always verify information before making any financial moves.
