While having inverse correlation with gold and silver futures, the experienced a single day’s biggest surge of 23.76%.
Undoubtedly, all the above have given warning signals a day before in advance on January 29, 2026, but hardly anybody wanted to take this alert seriously as their psyche has been tilted much in advance by the research houses’ reports, pronouncing exacerbated peak levels for both the precious metals.
On Jan. 26, 2026, I tried to highlight this possible directional change in my analysis Gold: Rallies Evaporate While Bullish Expectations Elevate Beyond Limits https://www.investing.com/analysis/gold-rallies-evaporate-while-bullish-expectations-elevate-beyond-limits-200673867, but received criticism only.
Moreover, I tried to indicate in advance about this sudden jolt while I explained about the preliminary signs of reversal in the gold-silver ratio in one of my analyses Spot Gold–Silver Ratio Flashes Reversal Risk After Extreme Futures Rally https://www.investing.com/analysis/spot-goldsilver-ratio-flashes-reversal-risk-after-extreme-futures-rally-200673957 on January 27, 2026, but it hardly remained unheard.
These major declines show that safe-haven demand for gold and silver may not be directly linked to current geopolitical concerns. The recent tensions are largely perceived to be the result of hype, attributed to actions by President Donald Trump since taking office on January 20, 2025.
The first surprise from him was the imposition of trade tariffs on the trading partners of the U.S. by using his economic emergency powers, even without seeking approval from the U.S. Congress, which was later challenged by the U.S. business associations in a lower court, delivering a verdict against President Trump with a penalty of refunding the collected tariffs to the nations that paid them.
But Trump’s administration filed a petition against this lower court decision in the Supreme Court of the U.S., where the final judgment has not yet been delivered, with many excuses by U.S. President Donald Trump, as the refund of collected tariffs will surge the fiscal deficit of the country much more, and so on.
No one knows when this judgment will be delivered in the future, as the Supreme Court was supposed to deliver this judgment on Dec. 9, first postponed it to December 14, and on Dec. 14, 2025, postponed this judgment without any future date.
President Trump began this year with a surprise on Jan. 2: he abducted the Venezuelan President, attempted to hold Greenland, and threatened Iran, which remains unresolved. Meanwhile, gold and silver experienced a trend change on Friday.
Undoubtedly, gold and silver are always treated as the safest haven, but one should not forget that the US dollar, despite declining its strength, will always remain the backbone of the global financial system for longer than recently attempted de-dollarization attempts by Russia and some other countries.
After this steep single-day fall, another important fact is to note that the silver future has led this slip by falling three times, of the fall experienced by the gold futures, as I explained in my analysis Silver Could Slip Faster Than Gold as XAU/XAG Bound to Reverse https://www.investing.com/analysis/silver-could-slip-faster-than-gold-as-xauxag-bound-to-reverse-200673399 on Jan. 16, 2026.
Technical Levels to Watch
Gold
In a monthly chart, gold futures are indicating continuation of exhaustion likely to reman till April, 2026 as the large wick of this exhaustive monthly candle looks evident enough to test the next immediate support at the 9 EMA ($3,959.38) where a breakdown in February could push the futures to remain in bearish pressure as any rally is hardly cross the 50% of this 11.39% fall in January 2026.
In a weekly chart, gold futures are showing weakness, which is likely to continue if the silver futures have closed the last week just near the immediate support level at $4,642, and a breakdown below this could push the futures to test the next support at the 9 EMA ($4,548.48) where a breakdown below this could push the futures to test the next support at the 20 EMA ($4,268.94) from where some reversal may be seen.
In a daily chart, gold futures could continue to drift down more despite some bounce backs next week as last closing below the significant support at the 20 EMA ($4,822.24) while the 9 EMA ($4,995.70) as turned downward, and suppose to come below the 20 EMA if gold futures move downward after opening on Monday, could result in the formation of a ‘Bearish Crossover” in the daily chart as the futures could test the next support at the 50 EMA ($4,525.61) from where some reversal may be seen.
Silver
In a monthly chart, silver futures have closed below the significant support at $82, and could test the next support at the 9 EMA ($54.448), where a breakdown could push the futures to test the next support at the 20 EMA ($43.655), from where some reversal may be seen.
In a weekly chart, silver futures are showing weakness as despite testing the immediate support at the 9 EMA ($76.913), just closed the last week, just above this support where a breakdown could push the futures to test the next support at the 20 EMA ($65), and if the silver futures find a breakdown below this, could head down to test the next support at the 50 EMA ($50.900) from where some reversal may be seen next week.
In a daily chart, silver futures have tested the significant support at the 50 EMA ($73.737) before closing the day, and could find some reversal, but a breakdown below this could push the futures to test the next supports at the 100 EMA ($61.222) and 200 EMA ($49.007).
Disclaimer: Readers are advised to take any position in gold and silver at their own risk, as this analysis is based only on observations.
