Last Updated on January 29, 2026 by Deon
On 29th January, 2026 the history books were slaughtered. In a month that will long be taught in economics classes, Gold clinched its strongest monthly gain in 56 years. But for all the attention Gold received, it was Silver that really grabs the spotlight, exploding through the $120 barrier in what some analysts are referring to as “Gold on steroids.”
And here is why the world is now scrambling in to the perceived safety of “hard” assets.
The 50-Year Breakout
And gold is on the rise, not just up but up, up and away. Spot prices had touched $5,594.82 — a huge 28% increase in January alone. For such a big single monthly increase, you have to go all the way back to 1973, a period during which there were systemic shifts under way on the global .
Broader Demand: It’s not just traditional investors behind this. From central banks to crypto giants like Tether—which broke the news that it wants to shift up to 15% of its holdings into physical gold—the “big money” is also trying to escape a rocky global economy.
Silver’s “Moon Shot”
If Gold is the solid anchor, Silver is the rocket ship. The white metal this year has jumped by almost 64%, peaking at $120.44 on Thursday.
the “Small Market” Catalyst: The silver market is also considerably smaller than the gold market so speculative inflows can lead to huge, vertical price spikes.
Industrial & Momentum Buying: An industrial silver shortage and momentum-handed speculative frenzy have ironically detached the price of ”poor man’s” gold from historical average, creating a high-reward (and -risk) opportunity for position traders.
The ‘Iran Premium’ and Washington’s Game of Waitệu.
Geopolitics remains the main driver of this rally.
The Tehran Standoff: Ratcheting up tensions between President Trump and Iranian officials have attached a big “risk premium” to precious metals. Investors are buying now and asking questions later, with an American armada said to be in the region.
A New Fed Era: The Federal Reserve held its rates steady this week, but the bigger story is the “Powell Succession.” With Jerome Powell’s term set to expire in May, markets are anxious about the prospect of who Trump will nominate for Fed Chair in his place. The likes of Kevin Warsh and Christopher Waller have been mentioned, and the risk-off nature around future policy prevents the USD from putting up a fight.
Outside the Big Two: Platinum and Palladium
The rally has become contagious. Platinum, meanwhile, rose to a new record of $2,918.80 earlier this week while Palladium is holding firm above $2,000. After the ‘Safe-Haven Sprint’ begins, it makes its way to every crevasse of the market price for precious metals.
The Verdict: A Structural Shift
It is far more than a “price spike” that we’re witnessing. We are experiencing a great rebasing of value. In a world of “paper promises” and political uncertainty, the market’s oldest safe haven has risen back to its throne.
