On the early morning of January 31, 2026, the global precious metals market experienced a rare "Black Friday" not seen in nearly 40 years. The international spot gold price plummeted by 12.92% in a single day, repeatedly breaching multiple thresholds from $5,400 to $4,700 during trading, with a low of $4,682 per ounce, marking the largest single-day decline since 1980. The silver market also collapsed simultaneously, with spot silver plunging over 35%, erasing nearly 30% of its market value in one day. This epic shockwave quickly triggered a chain reaction across global financial markets.

The core trigger for this plunge was the hawkish expectations fueled by changes in the Federal Reserve's personnel. After U.S. President Trump confirmed the nomination of Kevin W. to become Fed Chair, concerns over monetary tightening intensified, leading to a sharp rebound in the dollar index, while gold, as a non-yielding asset, faced massive sell-offs. Meanwhile, the short-term rapid rise in gold prices had accumulated substantial profit-taking, creating a strong technical correction demand. Factors such as margin adjustments triggered chain liquidations of high-leverage positions, forming a vicious cycle of "expectation correction—technical breakdown—leverage liquidation," which exacerbated the decline.

The sell-off quickly spread worldwide. International gold mining stocks generally fell over 10%, and the three major U.S. stock indices came under pressure. In the domestic market, Shanghai gold prices also dropped nearly 10%, with jewelry prices generally falling from above 1700 yuan/gram to the 1500-1600 yuan range, putting significant pressure on some high-position investors.

Regarding the future market, expert opinions are divided. Some believe that this round of rise lacks fundamental support, and the trend of funds shifting to the dollar and U.S. Treasuries may continue; others point out that in the long term, the global "de-dollarization," geopolitical risks, and debt issues still support gold. Historical experience shows that after liquidity-driven "flash crashes," markets often enter a high-volatility consolidation phase, making a direct V-shaped reversal unlikely.

This plunge once again warns the market: gold is not an asset that only rises and never falls. Investors need to rationally view short-term fluctuations, avoid blindly chasing gains or selling in panic, and always prioritize risk management. The future direction of gold prices will still depend on closely monitoring key variables such as the Fed's policy path, the dollar trend, and actions by global central banks. #贵金属行情下跌