Gold and Silver Rate Today: Silver’s rally is showing no signs of fatigue. After a record-breaking run in 2025, the white metal appears unwilling to take a breather. On January 19, the March silver futures finally breached the coveted Rs 3,00,000 mark on the Multi Commodity Exchange (MCX). The contract jumped 5.71 per cent to touch its new all-time high of Rs 3,04,200 per kilogram (kg) during the session so far. As of the time of writing, it traded at Rs 3,03,250 per kg, up by Rs 15,488 or 5.38 per cent against previous close.
On the COMEX division of the Chicago Mercantile Exchange (CME) in the United States (US), March silver futures jumped as much as 6.58 per cent to touch a new record high of $94.36 per ounce.
Meanwhile, February gold futures leapt 2.10 per cent to hit their lifetime high of Rs 1,45,500 per 10 grams. On the COMEX, February gold futures rose 2.23 per cent to a record $4,698 per ounce.
Platinum futures on the COMEX, too, jumped over 3 per cent to hit an intraday high of $2,394 per ounce.
Why Gold and Silver Rose Today
Rising geopolitical tensions drove the demand for safe-haven assets, pushing gold and silver prices higher.
Trump’s Greenland Tariff Threat
US President Donald Trump on January 17 announced a 10 per cent tariff on Denmark and seven other European countries, including the United Kingdom, Germany, and France, from February 1. He said these tariffs could increase to 25 per cent if a deal is not reached for the “complete and total purchase of Greenland.”
Iran’s All-Out War Warning
Meanwhile, Iran has warned of an all-out war in the event of any attack targeting Supreme Leader Ayatollah Ali Khamenei, as the country continues to grapple with deadly nationwide protests that have reportedly claimed at least 5,000 lives. “Any affront to the Supreme Leader of our country is tantamount to an all-out war against the Iranian nation,” President Masoud Pezeshkian said in a post on X.
The warning came amid heightened tensions with the US, particularly after Trump publicly criticised the Iranian regime and called for new leadership. Traders concerned over the escalation in tensions between the oil-rich protest-stricken nation and the US rushed to accumulate safe-haven assets.
Rising Industrial Demand and Supply-Side Concerns
Amid all these geopolitical conflicts, the persistent industrial demand for the white metal has been a key supporter of the rally in its prices. Silver is a key component for the production of solar panels, electric vehicles (EVs), phones, laptops, 5G networks, and even artificial intelligence (AI) chips.
The demand for silver comes amid supply-side concerns, as the white metal's market has been in a structural deficit for several years. Demand is consistently outpacing supply as mine production and recycling have remained largely flat for over a decade.
Most of the world’s silver, about 70 per cent, comes as a byproduct of mining of other metals such as copper, zinc, and lead. Since miners focus on these primary metals, silver production cannot be quickly increased, which keeps supply tight even as demand rises.
Weakening US Dollar
Apart from the abovementioned reasons, Satish Dondapati, fund manager – ETF at Kotak Mutual Fund, also attributed the rally to a weakening US dollar and robust investment demand. A weaker dollar makes dollar-priced commodities more affordable for overseas buyers using other currencies.
The US Dollar Index, which measures the greenback against a basket of six major currencies, has declined by more than 9 per cent over the last year. It quoted at 98.99, down 0.21 per cent against the previous close, as of the time of writing.
What Should Silver ETF Investors Do
With silver hovering near record highs, experts advise market participants to exercise caution.
Dondapati said, "As prices are at all-time highs, investors should remain cautious while investing and prefer a systematic approach rather than making lump-sum investments.” For those already invested, he said there is little reason to alter course, adding that investors should “continue to adhere to their asset allocation strategy” and maintain an allocation of around 15–20 per cent in precious metals, in line with their risk profile and investment time horizon.
