On January 30–31, 2026, silver in the United States experienced a sharp sell-off and price correction after a strong multi-month rally. The pullback came as financial markets reacted to major macroeconomic news, including the nomination of Kevin Warsh as the next Federal Reserve Chair and a stronger U.S. dollar, which reduced demand for precious metals. �
New York Post +1
💰 Current Market Levels (U.S.)
Silver prices plunged 20–32% from recent highs, trading roughly around $80–$105 per ounce after hitting record levels earlier in the month. �
New York Post +1
This represents one of the biggest daily drops in silver prices in decades, reversing much of the rally seen throughout early 2026. �
Investopedia
📉 What Caused the Drop?
👉 Fed News & Dollar Strength – President Trump’s announcement of Kevin Warsh as Fed Chair Nominee startled markets. Investors expect tighter monetary policy under Warsh, strengthening the U.S. dollar and reducing appeal for non-yielding assets like silver. �
New York Post
👉 Profit-Taking After Record Highs – Many investors booked profits after silver reached peak prices earlier in the month, contributing to the rapid decline. �
Investopedia
👉 Broad Market Weakness – U.S. stock markets (Dow, S&P 500, Nasdaq) were also down, dragging commodities like gold and silver lower as risk assets faltered. �
The Economic Times
🧠What Analysts Are Saying
• Volatility Remains High: The steep drop reflects investors’ reassessment of precious metals as macroeconomic conditions evolve. �
• Safe-Haven Demand Shift: Silver had surged strongly due to inflation fears and safe-haven buying, but the shift in monetary expectations undermined that trend. �
• Short-Term vs Long-Term: While short-term sentiment turned negative on profit-booking and policy expectations, long-term fundamentals like industrial demand and supply dynamics remain relevant for silver’s price outlook. �
Investopedia
Business Insider
Investopedia
📌 Key Takeaways for Investors
Short-Term Correction: Silver is correcting sharply after reaching historic highs earlier this month — a likely reaction to market news and positioning. �
Investopedia
Fed Positioning Matters: Monetary policy expectations and the strength of the U.S. dollar continue to be major drivers of silver price movement. �
New York Post
Risk Management: Given the high volatility, traders and investors may consider tighter risk control and clearer entry/exit strategies. �
Business Insider
📈 Silver Price Trends in January 2026
According to market data, silver had been rising significantly earlier in January, with average prices climbing well above historical levels before the recent correction. Year-to-date, the average closing price has exceeded $90 per ounce, with peaks above $117 per ounce just days before this pullback. �
StatMuse
🪙 Conclusion: U.S. Silver Market Outlook
As of 31 January 2026, silver markets in the U.S. are undergoing a major correction after a strong rally earlier in the month. The decline reflects macroeconomic shifts, changes in Fed expectations, profit-taking, and broader market instability. While short-term volatility is high, longer-term prospects will depend on industrial demand, monetary policy choices, and investor sentiment going forward.