Quant Mutual Fund Trims Gold and Silver Holdings Amid Record Price Surges

Gold and silver prices rose strongly through most of January 2026 amid global uncertainty, currency movements and higher demand for assets seen as safer during volatile periods. Gold ended the month up around 13%, marking its 6th consecutive monthly gain. Silver climbed nearly 19%, outperforming gold.  

Prices remained elevated for most of the month despite a sharp correction in the final two trading sessions. 

Multi-Asset Fund Pares Holdings 

Against this price backdrop, Quant Mutual Fund reduced its exposure to gold and silver in its Multi-Asset Allocation Fund.  

In its monthly release, the fund said it trimmed allocations to precious metals close to peak levels. The scheme is currently maintaining a minimum allocation of around 10% to gold and silver. 

Domestic Prices Touch Lifetime Highs 

Bullion prices reached record levels on January 29 on the Multi Commodity Exchange. Silver futures crossed ₹4 lakh for the first time, while gold moved close to ₹1.8 lakh per 10 grams.  

Buying interest remained strong during most of the month as investors increased allocations to precious metals. 

Reversal at Month-End 

Prices corrected sharply towards the end of January as selling intensified. On January 30, silver fell as much as 27%, or ₹1,07,968, in a single session, pulling prices back below ₹3 lakh just a day after touching record highs.  

Gold dropped up to 12%, or ₹20,514, marking its steepest one-day fall since March 2013. Losses extended into January 31, with silver again seeing heavy declines. 

Dollar Strength Adds Pressure 

The fall in bullion prices followed a sharp rise in the US dollar after US President Donald Trump appointed Kevin Warsh as the new Federal Reserve Chair.  

The announcement triggered the strongest single-day rally in the US Dollar Index since May last year, pushing it back above the 97 mark. A stronger dollar weighed on gold and silver prices globally. 

Curbs Imposed on ETFs 

Following the sharp decline, BSE imposed a 20% circuit limit on gold and silver exchange-traded funds from February 1.  

For the trading session, ETF prices are linked to the previous day’s NAV, with trades allowed only within a ±20% band. The measure was introduced to limit excessive intraday volatility. 

Read More: NFO Alert: Kotak Mutual Fund Introduces Kotak Services Fund!  

Conclusion 

Gold and silver saw sharp gains and equally sharp corrections in January. Quant MF reduced exposure near peak levels while keeping a minimum allocation to precious metals. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
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