Silver Rate Today: Silver prices today surged sharply on Tuesday, January 27, with jumping 6% to hit another fresh record high, crossing ₹3.5 lakh/kg. The rally was driven by a mix of geopolitical tensions, currency weakness and policy uncertainty sent investors rushing toward safe-haven assets. The rally gathered pace across both domestic and international markets, underlining the growing demand for precious metals amid rising global instability.
On the Multi Commodity Exchange (MCX), silver prices climbed 6% to hit an all-time high of ₹3,54,780, marking one of the sharpest single-day moves for the metal in recent times. Gold also extended its upward momentum, with climbing 2.5% to a record ₹1,59,820 per 10 grams, supported by strong safe-haven buying and a weakening rupee hovering near record lows.
Meanwhile, in the international market, gold prices remained elevated after crossing a key psychological threshold in the previous session. Spot gold rose 1% to $5,065.07 per ounce as of 0329 GMT, after hitting a record $5,110.50 on Monday. US gold futures for February delivery edged lower by 0.4% to $5,059.90 per ounce, reflecting some profit-taking at record levels.
Silver continued to outperform globally. Spot silver surged 5.2% to $109.22 per ounce, staying close to all-time highs after touching a record $117.69 on Monday. The white metal has already climbed 53% so far this year, underscoring its heightened sensitivity to both safe-haven demand and broader reflationary expectations.
Other precious metals showed mixed moves. Spot platinum slipped 2.5% to $2,658.19 per ounce after hitting a record $2,918.80 in the previous session, while palladium declined 1.3% to $1,956.31 per ounce.
Reasons behind the surge
The surge was driven by a combination of a softer US dollar, escalating geopolitical risks and renewed concerns around the independence of the US Federal Reserve, all of which strengthened the appeal of hard assets such as gold and silver.
Global developments added to the momentum. US President on Monday said he would raise tariffs on South Korean imports of automobiles, lumber and pharmaceuticals to 25%, criticising Seoul for failing to finalise a trade agreement with Washington. The move followed earlier tariff threats against Canada, triggered by concerns in the US over Canada’s warming ties with China after Prime Minister Mark Carney’s visit earlier this month.
These developments have deepened uncertainty around global trade, prompting investors to seek shelter in assets perceived as stores of value. At the same time, markets are grappling with uncertainty surrounding the . Bets are firmly tilted toward the Fed holding interest rates steady at its policy meeting beginning later on Tuesday, amid reports of a criminal investigation involving Fed Chair Jerome Powell, efforts to remove Fed Governor Lisa Cook, and speculation around the nomination of Powell’s successor in May.
Silver Price Outlook: What lies alead?
According to brokerage house PL Capital, precious metals have significantly outperformed Indian equities, reinforcing their role as effective portfolio stabilisers during phases of equity consolidation. Gold and silver have benefited from sustained central bank demand, currency volatility and persistent geopolitical uncertainty, while silver has received additional support from its dual role as both a precious and industrial metal amid constrained supply conditions.
Siddharth Vora, Head – Quant Investment Strategies and Fund Manager at PL Asset Management, said markets are currently being driven more by asset allocation choices than by broad-based equity rallies.
“Markets are currently in a phase where outcomes are being driven more by asset allocation than by broad-based equity rallies. While India’s long-term growth fundamentals remain intact, near-term volatility is inevitable. Gold and silver have once again demonstrated their relevance as portfolio stabilisers,” he said.
Anand Rathi, meanwhile, believes silver’s next phase of gains will depend less on valuation and more on sustained industrial demand. The brokerage pointed to themes such as solar power, electric vehicles and electrification as key long-term drivers. Historically, silver has tended to outperform during risk-on phases and underperform during periods of market stress, making it unsuitable as a defensive hedge but attractive as a tactical, satellite allocation.
Motilal Oswal Financial Services (MOSL) has advised a balanced bullion strategy, recommending a 75% allocation to gold and 25% to silver, reflecting a preference for gold as a steadier hedge in the current environment while retaining exposure to silver’s long-term structural upside.
With geopolitical risks unresolved and policy uncertainty lingering, precious metals appear poised to remain at the centre of global asset allocation decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.