Silver
crashed nearly 33% in a single trading session on January 30,
2026, plunging from above $121 per ounce to $76. This marks one of the most
violent selloffs in precious metals history, wiping out weeks of gains in just
48 hours.
The crash
was triggered by a perfect storm of hawkish Fed nomination
news, aggressive dollar strength, and cascading forced liquidations across
commodity markets.
What Triggered the Silver Price
Massacre?
“The
precious metals market turned into a slaughterhouse when, in just 48 hours,
silver crashed from historic peaks above $121 to $76, posting a nearly 33%
decline,” said Max Bączkowski, independent analyst and trader in comments
to FinanceMagnates.com.
He
attributed the collapse to Kevin Warsh’s Fed nomination, the resulting
dollar rally, and mass forced liquidations triggered by unclear Reuters
communication about market conditions.
President
Trump announced Friday morning his intention to nominate Kevin Warsh as
the next Federal Reserve chair, a candidate markets perceive as
significantly more hawkish than alternatives. This nomination sent shockwaves
through precious metals markets. Warsh, a former Fed governor, is viewed as
less dovish on monetary policy, which immediately strengthened the US dollar
and pressured dollar-denominated commodities like silver.
The Bloomberg
Dollar Spot Index rallied 0.4% on the news, gaining against all major
peers. Since silver trades inversely to dollar strength, this currency move
amplified selling pressure. Treasury yields also jumped, 10-year rates climbed
three basis points while 30-year yields surged five basis points, making
non-yielding assets like silver less attractive.
Forced Liquidations
Created Market Chaos
Reuters
published an “Exclusive” report citing anonymous sources claiming the
end of US government support for strategic metals, triggering algorithmic
trading systems to immediately dump positions.
“Trading
algorithms, programmed to detect negative signals from key agencies, began
selling in a fraction of a second,” Bączkowski explained, noting that
capital fled from commodities to the dollar before anyone could verify the
story’s fragile
The entire Reuters article that crashed the rare earth market has been rewritten, and it turns out the “reporting” that sparked the selling was fake news https://t.co/mYgEeguYkg
— zerohedge (@zerohedge) January 29, 2026
The Energy
Department told
Reuters in a statement after the story was published that the article was
“false and relies on unnamed sources that are either misinformed or
deliberately misleading.”
The selloff
didn’t spare other precious metals. Gold tumbled 10% to below
$4,700 per ounce after reaching record highs above $5,100 earlier in the week.
Platinum and palladium also collapsed, creating what Bączkowski called an
“abyss” that swallowed the entire precious metals complex.
Month-end
positioning exacerbated volatility. Friday, January 30 marked the final trading
day of the month, when liquidity typically thins and price
moves become exaggerated. Profit-taking after silver’s parabolic 57% January
rally created additional downward pressure.
Technical Analysis: Where
Silver Found Support
In my
earlier article published today, I
noted silver was down about 17%, but by day’s end, losses had doubled
to over 32%. The white metal crashed from $115 to below $78, eventually
stabilizing near the 50-day exponential moving average (50 EMA) and
a critical support zone at $70.81 per ounce.
This
support level coincides with historical peaks from the turn of
2025/2026, creating a strong technical floor. If silver holds this area through
the weekend and allows markets to calm, I’d expect a demand response
rather than supply pressure next week.
Even if
selling continues, silver has substantial support ahead, most importantly
at $55 per ounce, which aligns with the 200-day exponential moving
average (200 EMA).
What’s Next for Silver
Investors?
Despite the
brutal one-day move, silver’s long-term fundamentals remain intact.
Supply deficits continue as industrial demand, particularly from solar panels
and electric vehicles, hits record levels. Geopolitical uncertainties that
drove the initial rally haven’t disappeared; they’ve simply been overwhelmed by
short-term dollar dynamics.
The 200
EMA at $55 represents the ultimate line in the sand for bulls. A close
above $80 would suggest the worst is over and buyers are returning. Conversely,
a break below $70 could trigger another leg down toward that 200-day average,
though physical market tightness may limit downside.
Volatility
will likely persist in coming sessions as leveraged positions unwind and the
market digests Warsh’s nomination implications. The Fed chair transition won’t
occur until Powell’s term expires in May 2026, giving markets months to price
in potential policy shifts.
Silver Price Analysis, FAQ
Why did silver crash today?
Kevin
Warsh’s hawkish Fed chair nomination strengthened the dollar and triggered
forced liquidations across precious metals markets.
Where is silver finding
support?
Silver
stabilized at the 50 EMA near $70.81, with major support at the 200 EMA around
$55 per ounce.
Is this a buying
opportunity?
Yes. If
silver holds above $70 through the weekend, technical analysis suggests
potential for a demand response next week, though volatility remains elevated.
Will silver ever go up
again?
Technical
analysis suggests silver found strong support at the 50-day exponential moving
average near $70.81, which coincides with historical peaks from late 2025. If
this level holds through the weekend, a demand response is likely next week.
This article was written by Damian Chmiel at www.financemagnates.com.
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