Silver and Gold Prices Reach Record Highs
On Thursday, January 29, 2026, silver prices reached a new all-time high, with gold also experiencing a significant surge. Spot silver climbed to $118.061 an ounce, briefly hitting a fresh lifetime high of $119.34 earlier in the session. Gold neared an all-time high of $5,600, up more than $200 from the previous day.
However, later in the trading session on January 29, both gold and silver prices experienced a sharp selloff. Gold prices crashed almost 6%, and silver prices tumbled 8%.
Silver Market Surge
Silver's rally has been extraordinary, with a 65% increase in January alone. The surge led to silver futures for March 5, 2026, jumping to Rs 4,00,780 per kg.
Market analysts suggest that silver has benefited from investors seeking alternatives to gold, coupled with tight supply conditions. Silver's rise is also attributed to increasing demand from AI computing and green-energy technologies.
Gold Market Performance
Gold also experienced gains, with MCX gold contracts expiring on February 5, 2026, rising nearly 6% to trade at Rs 1,75,869 per 10 grams. Spot gold jumped nearly 3% to touch an all-time high of $5,591.61 an ounce.
The Federal Reserve's decision to hold interest rates steady contributed to the rise in gold and silver prices.
Factors Influencing the Market
Geopolitical tensions, particularly those involving the U.S. and Iran, have contributed to the precious metals rally. A weak dollar and expectations of Federal Reserve rate cuts are also driving prices.
Some analysts suggest that extreme price swings indicate a potential disconnect from fundamental supply and demand.
Market Correction
During the trading session on January 29, gold prices slid 5.7% to $5,104.6 an ounce before trimming losses. Silver prices also fell, with US spot silver prices cracking over 8% to $106.8.
Analysts attribute the sudden fall to profit-taking, a stronger US dollar, and a selloff in equity markets.
Impact on Mining Stocks
The increase in gold prices has supported mining stocks.
Conclusion
Silver and gold prices have recently experienced significant volatility, reaching record highs before undergoing a correction. These price movements have been influenced by factors such as geopolitical tensions, Federal Reserve decisions, and market sentiment.
