Gold and silver rates today: Both gold and silver prices saw a significant rebound on Monday, after logging biggest single day crash in more than a decade.
Spot gold recovered up to 1% after dropping 4% in early morning session on Monday, during the Asian trading hours. Meanwhile, spot silver also rebounded over 8% to $84.140, after briefly falling nearly 12%.
Over the past year, precious metals have surged to record levels, surprising even veteran market participants. The upswing gathered strong momentum in January as investors flocked to gold and silver amid fresh worries over geopolitical tensions, currency erosion, and the Federal Reserve’s independence.
What’s driving gold and silver prices today?
Kaynat Chainwala, AVP Commodity Research, Kotak Securities explained that Gold and silver suffered their steepest single-day fall since 1980 on Friday, settling at $4,864/oz and $84.66/oz, respectively.
The sell-off was triggered by a sharp rebound in the U.S. dollar, broad-based global market weakness, and the Trump administration’s nomination of Kevin Warsh, widely regarded as an inflation hawk, as the next Federal Reserve chair.
“The brutal correction followed an exceptional rally. Spot gold had surged to a fresh all-time high of $5,597/oz on Thursday, while silver peaked at $121.6/oz, buoyed by a softer dollar and persistent geopolitical tensions. Silver saw a deeper correction given its higher volatility, exposure to industrial demand, and potentially from CME’s margin hike announced Wednesday (Jan 28), raising non-heightened requirements from 9% to 11% and heightened from 9.9% to 12.1%,” Chainwala said.
Goldman Sachs, was quoted as saying by Bloomberg, that a record surge in call-option buying — which gives investors the right to purchase at a fixed price — had “mechanically reinforced upward price momentum,” as option sellers hedged rising exposure by buying more of the underlying asset.
Where’s gold and silver prices headed?
According to Akshat Garg, Head Research & product of Choice Wealth, both precious metals had run up sharply over the last year, and what we’re seeing now is a mix of profit-booking, global volatility and reaction to macro cues.
“For investors, this isn’t a moment for panic. Gold and silver are portfolio hedges, not trading bets. If your allocation is sensible, staying put makes sense. If anything, staggered buying during corrections works better than chasing rallies. Volatility hurts emotions, not long-term plans,” said Garg.
Meanwhile, Ponmudi R, CEO of Enrich Money, believes that gold has seen a sharp multi-session correction from recent peaks above $5,480–$5,626, falling nearly 16% to trade around $4,745–$4,887, after testing intraday lows near $4,700.
On the technical outlook of spot gold, Ponmudi said, “ The move featured exhaustion patterns like spinning tops and reversal candles, triggering panic selling amid overbought conditions. Prices now consolidate in the $4,740–$4,760 zone, where prior breakout levels, the 20-day EMA, and converging supports align providing a robust technical floor. The 50-day EMA near $4,500–$4,533 offers deeper cushioning, while the multi-year ascending channel and slope support limit further downside. As long as prices hold above $4,700, the bullish structure remains valid, with recovery potential toward $4,800–$5,000+ on renewed safe-haven demand or momentum recovery. A decisive break below $4,500 would be needed to challenge the broader uptrend.”
Meanwhile, on the spot silver prices, Ponmudi added that silver endured even more extreme volatility, plunging nearly 40% from highs above $118–$121 to around $74–$85 (with lows near $74).
“This outsized correction aligns with historical late-stage bull phase shakeouts, but silver’s hybrid monetary-industrial profile continues to underpin the outlook amid persistent supply tightness and demand growth. The $74–$70 zone, aligning with the 50-day EMA, forms critical demand support. Stability above this base could facilitate a rebound toward $82–$92–$100+ as industrial tailwinds re-emerge and momentum rebuilds. The ascending channel remains supportive on shallow pullbacks,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
