Silver stays near all-time high level: Factors behind metal’s sharp surge

Silver prices eased slightly on Wednesday (January 28) but remained near all-time high levels after a sharp rally this week, stressing sustained investor interest in precious metals amid global trade and policy uncertainty.

Spot silver rose 0.6% to $113.63 an ounce, after touching an all-time high of $117.69 on Monday (January 26). Prices have surged nearly 60% so far this year, significantly outperforming most commodities.

The pace of the rally has been unusually rapid. Silver moved from $80 to $90 an ounce in about 15 days, climbed from $90 to $100 an ounce in 10 days, and crossed the $100–$110 an ounce range in just a single session, highlighting the intensity of buying interest.

Market participants attributed the surge to a mix of safe-haven demand, trade-related uncertainty and spillover strength from gold.

Aamir Makda, Commodity and Currency Analyst at Choice Broking, said silver hit record levels as investors responded to rising geopolitical risks and tariff-related concerns.

He added that prices on domestic exchanges continue to trade above key moving averages, signalling strong momentum, though technical indicators such as the Relative Strength Index suggest the metal is currently in overbought territory.

Despite the bullish trend, Makda cautioned that the emergence of RSI divergence could point to near-term consolidation, even as the broader outlook remains moderately positive. He identified higher resistance levels ahead if prices continue to advance.

The volatility has prompted risk-management action from exchanges. CME Group said it will raise margins on Comex silver futures to 11% of notional value from 9% for non-heightened risk profiles, following the sharp rise in prices. Margin changes typically reflect heightened price swings and are aimed at containing systemic risk.

In India, elevated silver prices have added pressure to an already challenging environment for the gems and jewellery sector. Colin Shah, Managing Director of Kama Jewelry, said the recently signed India–EU Free Trade Agreement could provide relief to exporters by removing duties, particularly at a time when gold and silver prices

are rising sharply. He noted that easier access to European markets may help diversify export demand and support the industry’s recovery.

-With agencies inputs