#Silver Price News & Insights Today 31-1-2026 - Elliott Wave and technical analysis of Silver, key support and resistance zones. Video by MCO Global Equities & Commodities.
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Silver is experiencing historic volatility as of January 31, 2026, with prices consolidating after a "bloodbath" session on Friday. After hitting an all-time record high near $121.78/oz earlier this week, spot silver crashed by approximately 31-36%, settling near $78.53/oz. In India, MCX silver futures suffered their worst-ever single-day fall, plunging by over ₹1.08 lakh to close near ₹2.92 lakh per kg. Markets are currently in a "consolidation phase" as investors assess a major shift in U.S. monetary expectations following the nomination of Kevin Warsh for Federal Reserve Chair.
Key Market Drivers
-Fed Chair Nomination: The primary catalyst for the crash was the reported plan to nominate Kevin Warsh as the next Federal Reserve Chair. Markets interpreted this as a hawkish signal, causing the U.S. Dollar and Treasury yields to spike, which pressured non-yielding assets like silver.
-Margin Hikes: The CME Group increased margin requirements for silver from 11% to 15% effective February 2, 2026. This move forced many leveraged traders to liquidate positions, accelerating the downward spiral.
-Gamma Squeeze & Technical Reversal: The rally was partially fueled by a "gamma squeeze" in options markets. As prices fell back through major strike levels, dealers were forced to sell futures to rebalance portfolios, intensifying the sell-off.
-Profit Booking: Following a year-to-date rally of over 50-60% in just one month, aggressive profit-taking was triggered once the parabolic trend broke.
Analysis & Outlook
Despite the crash, many analysts maintain a bullish long-term outlook due to structural supply deficits and high industrial demand from the AI and green energy sectors.
-Support Levels: Analysts identify the $70–$74 zone as critical demand support. If silver holds this base, a rebound toward $92–$100 is possible as industrial tailwinds re-emerge.
-Bearish Warning: Some institutions, including JPMorgan, have warned that silver could retreat further toward the $50 level if the dollar continues to strengthen and speculative froth continues to clear.
-Extreme Forecasts: While controversial, some aggressive models still project silver could reach between $150 and $500,000 (INR) by the end of 2026 if the de-dollarization trend accelerates.
