The global precious metals market witnessed a historic reversal. This “flash crash” follows a relentless multi-month rally that had recently pushed both metals to lifetime highs. COMEX silver rate was more than 31% lower than its lifetime high of $121.755 per ounce. The COMEX gold price ended over 11% lower at $4,763.10/oz.

Indian Gold and Silver ETFs saw declines of up to 20% in a single session.Gold futures expiring on February 5, 2026, slid by as much as Rs 11,000, or 6.5%, to settle at Rs 1,59,984 per 10 grams. Silver contracts for March 5, 2026, delivery saw an even steeper decline, plunging Rs 68,000, or 16.6%, to Rs 3,34,503 per kg – going below the Rs 3.5 lakh per kg mark.

President Trump’s nomination of Kevin Warsh to replace Jerome Powell as Fed Chair has rattled markets.The US Dollar surged following the Fed announcement, making dollar-denominated metals more expensive for international buyers and prompting immediate profit-booking.

The Chicago Mercantile Exchange (CME) implemented aggressive margin increases for silver and gold. This forced highly leveraged traders to liquidate positions, triggering a “margin call” domino effect that drained market liquidity.

CME Group is raising margins on Comex gold and silver futures after prices suffered their biggest slides in decades.Gold margins will rise to 8% of the value of the underlying contract from the current 6% for a non-heightened risk profile. The heightened risk profile margins will be increased to 8.8% from the current 6.6%, it said.

Silver margins will climb to 15% from the current 11% for a non-heightened risk profile, while the heightened risk profile margins will be hiked to 16.5% from the current 12.1%, according to the statement. Platinum and palladium futures’ margins will also be boosted.