Precious Metals See Historic Volatility: Gold Tops $5,600, Silver Surges Past $120 Before Sharp Pullback
NEW YORK, January 30, 2026 – The precious metals market experienced a rollercoaster week, with gold and silver soaring to unprecedented all-time highs before a violent reversal sent prices sharply lower. The dramatic moves were fueled by intense safe-haven demand, speculative trading, and a key political development regarding the leadership of the Federal Reserve.
Record-Shattering Rally Meets Profit-Taking
On Thursday, January 29, gold and silver prices powered to historic peaks. April Comex gold futures reached a record high of $5,626.80 per ounce, while silver surged to $120.45 per ounce. The rally was driven by persistent inflation concerns and strong safe-haven bidding from investors seeking protection against economic uncertainty. Silver, in particular, has been a standout, rising an eye-popping 65% in January 2026 alone and 249% over the past year.
Friday’s Sharp Reversal
The parabolic spike was short-lived. By Friday morning, January 30, prices had reversed violently. Gold and silver were “strongly lower,” according to market reports, as shorter-term futures traders engaged in aggressive profit-taking. The sell-off accelerated following the announcement of President Trump’s pick for the next Federal Reserve Chair, a selection perceived by the market as potentially less accommodative than hoped.
Key Market Data & Analyst Forecasts
| Metric | Details |
|---|---|
| Gold Record High (Jan 29) | $5,626.80 per ounce (April Comex futures) |
| Silver Record High (Jan 29) | $120.45 per ounce |
| Silver January 2026 Gain | Up approximately 65% |
| Silver 1-Year Gain | Up 249% |
| Notable Analyst Forecast | Citi predicts silver could reach $150/oz within three months. |
| Primary Catalyst for Sell-off | Profit-taking & new Fed Chair appointment. |
Market Sentiment and Road Ahead
Analysts are divided on the immediate path forward. Some see the pullback as a healthy consolidation after a parabolic move, with key support levels for silver around $107 to $110 per ounce being critical for maintaining the longer-term uptrend. Others warn that the market may be broken, with speculative flows amplifying price moves beyond fundamentals. The persistent threat of U.S. inflation continues to provide underlying support for the metals, even as they face headwinds from a potentially less dovish Federal Reserve.
Frequently Asked Questions
Why did gold and silver prices crash on January 30?
The sharp decline was primarily due to two factors: traders locking in profits after the record-breaking rally, and a market reaction to President Trump’s selection of a new Federal Reserve Chair, which sparked concerns of a less easy monetary policy stance.
What is driving the incredible surge in silver prices?
Silver’s surge is attributed to a combination of safe-haven demand similar to gold, its industrial uses, significant buying from China, and a weakening U.S. dollar. Its lower price point relative to gold also attracts more speculative trading, which can exaggerate moves.
Are these high prices sustainable?
Market opinions are split. Institutions like Citi see further upside, forecasting $150 for silver. Other analysts caution that the rapid gains have been driven by speculation and warn of volatility and potential for a deeper correction if the inflation narrative shifts or the dollar strengthens.