COMEX gold prices witnessed a freefall on Friday amid profit booking after the recent streak of gains. CCME Group announced a 33% increase in maintenance margin requirements for gold futures, effective Monday, February 2, 2026. This is part of a broader, second, rapid increase on precious metals in three days, with silver margins rising 36%, platinum by 25%, and palladium by 14%, following extreme price volatility. In response, MCX (India) revised margins, with bullion gold at 20% and silver at 25%, effective Feb 1, 2026. Moreover, the naming of the next candidate for U.S. Federal Reserve Chair and producer price data pushed the U.S. dollar higher, weighing on the yellow metal. Trump said he had nominated former Fed governor Kevin Warsh as the next Fed chair, ending months of speculation over the future leadership of US monetary policy. Dollar index climbed above 97 mark, gaining around 0.75% on the day. The front month contract nosedived by over 11% to $4,907.50 per ounce. Meanwhile, silver futures also were in freefall by 31% to $85.25 per ounce. Nevertheless, persistent geopolitical tensions will likely keep the safe haven metals supported.

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