Quant MF cuts gold, silver exposure near peak levels in multi-asset fund
Gold and silver rallied sharply in January 2026 amid global uncertainty, shifting currency trends, and rising demand for safe-haven assets, driving prices to elevated levels. Despite a sharp correction in the final two trading sessions of the month, gold still ended January up about 13%, while silver surged nearly 19%.
Against this backdrop of high prices and increased volatility, Quant Mutual Fund trimmed its exposure to gold and silver near peak levels in its Multi-Asset Allocation Fund.
In its monthly release, Quant Mutual Fund said, “Precious metals once again made headlines for their lofty price movements. And despite hefty corrections on the last two days, Gold recorded a gain of 13% and Silver 19% through the month. In our Multi Asset Allocation fund, we pruned exposures to Gold and Silver nearly to their peak values, and our currently maintaininga minimum allocation of ca. 10% to precious metals in the scheme.”
Also Read | Gold and silver ETFs jump up to 13% after 3-day sell-off. Here’s what drove the rebound
With a gain of 13% by gold, it marked its sixth consecutive monthly increase. In multi-asset strategies, asset allocation is dynamic by design, and portfolio weights are regularly adjusted based on valuations, price momentum, volatility, and concentration risk.
January was a very eventful month for gold and silver, with prices of both metals going up sharply during most of the month as many investors rushed towards safe options because of uncertainty in global markets. People looked at gold and silver as protection for their money, which pushed prices higher.
Gold and silver reached very high levels, close to record prices. On January 29, Gold and silver futures scaled fresh lifetime highs on the Multi-Commodity Exchange (MCX). Silver surged past the Rs 4 lakh mark for the first time, while gold climbed closer to Rs 1.8 lakh per 10 grams.
Silver emerged as a better investment than gold in the starting month of the current calendar year because it benefits both as a precious metal and from industrial demand, which added to the buying pressure.
However, towards the end of the month, things changed quickly. Once prices became very high, many investors started selling to book profits. This caused a sudden fall in prices. On January 30, silver delivered a stunning reversal on the MCX, plunging up to 27% — or Rs 1,07,968 — in a single day, marking its worst-ever crash and dragging prices back below the Rs 3 lakh mark, just a day after the metal had surged to a record high of Rs 4 lakh.
Gold prices also tanked as much as 12%, or Rs 20,514, in a single day on January 30, marking their worst one-day rout since March 2013, when prices had plunged 9% on the MCX.
The fall on January 31, silver delivered a stunning reversal on MCX, plunging up to 25% — or Rs 92,000 — in a single day, marking its worst crash in 15 years and dragging prices back below the Rs 3 lakh mark, just a day after the metal had soared to a record high of Rs 4 lakh.
Also Read | Gold, silver ETFs see sharp correction: Redeem, hold or buy more?
The drop in bullion prices came after US President Donald Trump appointed Kevin Warsh as the new Federal Reserve Chair, triggering the dollar’s strongest single-day rally since May last year. The surge pushed the US Dollar Index back above 97 as concerns over central bank independence eased.
The selling became stronger as traders exited their positions and market sentiment changed. A stronger US dollar and changes in global risk mood also added pressure on prices.
Post this drop
Following the historic crash in gold and silver prices, BSE on February 1 imposed a 20% circuit limit on gold and silver ETFs. For the current trading session, ETF prices are anchored to the previous day’s NAV (T-1 NAV), with transactions permitted only within a ±20% band. The move aims to curb excessive intraday volatility and protect investors from abrupt price swings
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and Twitter handle.
Against this backdrop of high prices and increased volatility, Quant Mutual Fund trimmed its exposure to gold and silver near peak levels in its Multi-Asset Allocation Fund.
In its monthly release, Quant Mutual Fund said, “Precious metals once again made headlines for their lofty price movements. And despite hefty corrections on the last two days, Gold recorded a gain of 13% and Silver 19% through the month. In our Multi Asset Allocation fund, we pruned exposures to Gold and Silver nearly to their peak values, and our currently maintaininga minimum allocation of ca. 10% to precious metals in the scheme.”
Also Read | Gold and silver ETFs jump up to 13% after 3-day sell-off. Here’s what drove the rebound
With a gain of 13% by gold, it marked its sixth consecutive monthly increase. In multi-asset strategies, asset allocation is dynamic by design, and portfolio weights are regularly adjusted based on valuations, price momentum, volatility, and concentration risk.
January was a very eventful month for gold and silver, with prices of both metals going up sharply during most of the month as many investors rushed towards safe options because of uncertainty in global markets. People looked at gold and silver as protection for their money, which pushed prices higher.
Gold and silver reached very high levels, close to record prices. On January 29, Gold and silver futures scaled fresh lifetime highs on the Multi-Commodity Exchange (MCX). Silver surged past the Rs 4 lakh mark for the first time, while gold climbed closer to Rs 1.8 lakh per 10 grams.
Silver emerged as a better investment than gold in the starting month of the current calendar year because it benefits both as a precious metal and from industrial demand, which added to the buying pressure.
However, towards the end of the month, things changed quickly. Once prices became very high, many investors started selling to book profits. This caused a sudden fall in prices. On January 30, silver delivered a stunning reversal on the MCX, plunging up to 27% — or Rs 1,07,968 — in a single day, marking its worst-ever crash and dragging prices back below the Rs 3 lakh mark, just a day after the metal had surged to a record high of Rs 4 lakh.
Gold prices also tanked as much as 12%, or Rs 20,514, in a single day on January 30, marking their worst one-day rout since March 2013, when prices had plunged 9% on the MCX.
The fall on January 31, silver delivered a stunning reversal on MCX, plunging up to 25% — or Rs 92,000 — in a single day, marking its worst crash in 15 years and dragging prices back below the Rs 3 lakh mark, just a day after the metal had soared to a record high of Rs 4 lakh.
Also Read | Gold, silver ETFs see sharp correction: Redeem, hold or buy more?
The drop in bullion prices came after US President Donald Trump appointed Kevin Warsh as the new Federal Reserve Chair, triggering the dollar’s strongest single-day rally since May last year. The surge pushed the US Dollar Index back above 97 as concerns over central bank independence eased.
The selling became stronger as traders exited their positions and market sentiment changed. A stronger US dollar and changes in global risk mood also added pressure on prices.
Post this drop
Following the historic crash in gold and silver prices, BSE on February 1 imposed a 20% circuit limit on gold and silver ETFs. For the current trading session, ETF prices are anchored to the previous day’s NAV (T-1 NAV), with transactions permitted only within a ±20% band. The move aims to curb excessive intraday volatility and protect investors from abrupt price swings
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and Twitter handle.
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