Gold, Silver price today: Metal stocks came under intense selling pressure on Friday, January 30, mirroring the sharp correction seen in gold, silver, and other base metals. Shares of Hindustan Zinc Limited, Vedanta Limited, Hindustan Copper Limited, and National Aluminum Company Limited witnessed steep declines as weakening commodity prices hurt sentiment across the space. This marked the second straight session of losses for metal stocks after the crash in gold and silver prices.
Hindustan Copper slumped more than 19% to an intraday low of ₹554.65. Hindustan Zinc dropped 13% to ₹546.25, while NALCO slid nearly 12% to ₹339.75. Vedanta also declined 10% to ₹614.45 during the session.
The Nifty Metal index fell over 5%, emerging as the worst-performing sectoral index on the NSE. Over two trading sessions, the index has corrected by more than 10%.
Broader markets were also hit after the Union Budget announcements. The BSE Sensex dropped more than 2,800 points from the day’s high, while the Nifty 50 slipped to 24,571.75 after Finance Minister Nirmala Sitharaman announced an increase in Securities Transaction Tax on derivatives. STT on futures was raised to 0.05% from 0.02%, while STT on options transactions was increased to 0.15% from 0.01% earlier. Markets later recovered part of the losses and were trading around 1% lower at about 2 pm.
Gold, silver hit lower circuits
Gold and silver prices extended their steep fall on Sunday, February 1, hitting the 9% lower circuit as investors rushed to book profits amid a global selloff triggered by a stronger US dollar. Sentiment was further dented after reports suggested that CME Group was increasing margins on Comex gold and silver futures. Traders also remained cautious ahead of the Union Budget 2026.
On MCX, silver prices dropped 9% to the lower circuit at ₹2,65,652 per kg, while MCX gold prices also hit their 9% lower circuit at ₹₹1,36,185 per 10 grams.
The selloff had accelerated on Friday, January 30. Silver prices plunged 19% to ₹3.12 lakh per kg, while gold fell to ₹₹1.65 lakh per 10 grams. This came immediately after silver had touched a record high of ₹4,04,500 per kg on Thursday, before witnessing a sharp collapse the next day.
Why gold and silver prices melted down
Commodity markets globally have remained volatile since US President Donald Trump nominated Kevin Warsh as the new Federal Reserve Chair. Market participants believe his leadership could strengthen the US dollar, reducing the appeal of safe-haven assets like gold and silver.
Although Warsh’s stance had appeared to soften in recent months, aligning with calls for lower interest rates, analysts believe he may revert to a stricter policy approach if inflationary pressures return.
Bloomberg also reported that CME Group was raising margins on Comex gold and silver futures following the steepest price declines in decades. Gold margins are set to increase to 8% from 6% for non-heightened risk profiles, and to 8.8% from 6.6% for heightened risk profiles.
Silver margins will rise to 15% from 11% for non-heightened risk profiles, while heightened risk profile margins will be raised to 16.5% from 12.1%. Margins on platinum and palladium futures are also set to be increased.
