Gold fell 15% after record high! Fall due to speculation about Fed Chair's strictness, yet biggest jump since 1980
New Delhi Gold prices in the global market first made a record and then showed a sharp decline (Gold Price Crash). But the story did not end here. On Friday, January 30, gold fell by more than 8% in the global market and fell by a huge 15% on MCX. In fact, the discussion intensified in the market that the US Federal Reserve may soon get a more strict (hawkish) chairman. Despite this, gold is on track to deliver its strongest monthly performance in January since 1980.
During trading on the international market (COMEX), by 11.30 pm, spot gold fell by 8.74 percent i.e. $ 465 (gold price fall) and started trading at $ 4853 an ounce. On Thursday itself, gold had reached an all-time high of $5,594.82 per ounce (gold price today). Prices have risen more than 20% so far in January, marking the sixth consecutive month that gold has been on a monthly rise.
Big question: What is the reason for the decline?
“The prospect of a less dovish Fed chair, a recovery in the dollar and gold being in the overbought zone kept prices under pressure,” said Tim Waterer, chief trade analyst at KCM. Actually, Donald Trump has said that he will announce the name of his candidate for Fed Chair on Friday. There is speculation in the market that former Fed Governor Kevin Worsh may get this responsibility.
Matt Simpson, senior analyst at StoneX, says, "Speculation of Kevin Worsh becoming Fed chair has put pressure on gold in Asian trade."
Also read- Gold Silver Price Crash LIVE: Silver broke all records at 11 o'clock, ₹ 1.28 lakh broken; Gold becomes cheaper by ₹27500, what is the price?
Dollar also comes under pressure
The Fed did not change interest rates this week, which supported the dollar. A stronger dollar means gold becomes more expensive for buyers in other countries. However, the market is still expecting two interest rate cuts in 2026.
Silver and other metals also slipped
Silver fell by 24.84% to $ 86 an ounce (silver price today), whereas on Thursday a record of $ 121.64 was made (silver price at aal time high). There has been a 56% jump so far in January.
Apart from this, platinum fell by 18.85% and started trading at $ 2,124 an ounce. It decreased by $ 493 per ounce.
Palladium fell 15.73% to trade at $1,701 an ounce. During trading it registered a decline of $ 317 per ounce.
Experts believe that there is a clear message in the market. Gold remained subdued due to fear and fears of tighter monetary policy, but global tensions still make it a long-haul player. Is this decline after record high just a break or a sign of changing trend? Investors' eyes are now fixed on the Fed Chair's announcement.
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