Gold and Silver See One of the Strongest Monthly Gains in History

Chennai: Gold prices touched a new record of Rs 1.83 lakh per 10 gm and silver Rs 4.05 lakh per kg in the spot market on Thursday. With 27 per cent and 66 per cent gain, gold and silver have seen one of the strongest monthly rallies in recorded history.

Gold, in the international market, surged closer to $5600 per ounce, and silver moved up to $121 per ounce, though it remained volatile during intraday trade. “With 27 per cent monthly gain in January, gold recorded the second highest monthly rise in the last 100 years. Silver with 66 per cent monthly gain, January saw one of the strongest monthly rallies in its recorded history.

In the Delhi spot market, gold touched Rs 1,83,000 per 10 gm and silver was at Rs 4,05,000 per kg. In the Multi Commodity Exchange, gold touched Rs 1.80 lakh during the day and silver went up to Rs 4.17 lakh.

“This is no longer a normal cyclical up-move. The price action reflects a classic bullion mania phase driven by sharp dollar weakness, global monetary uncertainty, geopolitical stress and financial de-risking as well as aggressive investor positioning,” said Ajay Kedia, MD, Kedia Commodities.

According to him, such historical monthly moves typically signal late-stage acceleration, where risk management becomes more important than return chasing. Volatility will rise, emotions will dominate, and sharp mean-reversions cannot be ruled out.

Bullion remains structurally bullish, but tactically, this is a phase for discipline, hedging, and calibrated exposure and not blind momentum buying, he added

“When gold “talks”, it mainly signals geopolitical tensions, systemic risks inside or outside major global economies, and may portend currency devaluation because of the above risks. But when Silver begins to "scream", outperforming gold with high velocity/parabolic moves, it often signals the final, speculative stage of a run; one that historically ends against investors’ best interests,” finds WhiteOak Capital MF.