Silver prices stole the spotlight on Wednesday, January 28, racing to a fresh lifetime high as global markets reacted to a weakening US dollar and lingering
macro uncertainty. The sharp rally came amid investor caution ahead of the US Federal Reserve’s policy decision and heightened geopolitical tensions, which together boosted demand for precious metals. On the domestic front, MCX silver prices surged nearly 6 per cent, scaling an unprecedented peak of Rs 3,77,655 per kilogram. The weakness in the US dollar, hovering near multi-year lows, made dollar-priced commodities more appealing, pushing silver and gold higher across global and Indian markets. Silver Shines As Global And Domestic Prices Hit New Peaks In international trade, spot silver edged up about 0.6 per cent to $113.63 an ounce, after touching an all-time high of $117.69 earlier in the week. The metal has already rallied close to 60 per cent so far this year, supported by strong investment inflows, constrained supply, and a persistently soft dollar backdrop. The surge was equally striking in India, where MCX silver posted one of its strongest single-day gains in recent months. Analysts attribute the momentum to a combination of safe-haven demand and broader optimism around precious metals as financial markets brace for potential policy shifts later in the year. Gold Extends Historic Rally Alongside Silver Gold mirrored silver’s strength, continuing its record-breaking run in both global and domestic markets. Internationally, spot gold rose around 0.6 per cent to $5,219.97 an ounce in early Asian trade, after briefly touching a new high of $5,224.95. Prices are now up more than 20 per cent since the start of the year. US gold futures for February delivery jumped 2.6 per cent to $5,216.80 an ounce, reflecting sustained bullish sentiment. In India, MCX gold February futures climbed nearly 2 per cent in morning trade, hitting a fresh record high of Rs 1,60,509 per 10 grams. The rally underscores growing investor preference for hard assets amid currency weakness and economic uncertainty. Fed Watch And Dollar Weakness Drive Market Sentiment The US dollar continued to trade near four-year lows, weighed down by falling consumer confidence, which recently slipped to its weakest level in over a decade. The data amplified concerns about a slowing labour market and sticky inflation. Market participants are now focused on the US Federal Reserve’s January policy meeting, where rates are widely expected to remain unchanged, even as expectations build for potential cuts later in the year. Should Investors Chase The Rally? Despite the strong momentum, analysts are urging caution at elevated levels. Aamir Makda, Commodity & Currency Analyst at Choice Broking, warned that technical indicators are flashing early signs of overheating, according to a Mint report. “While the momentum is undeniably strong, the RSI is currently in overbought territory across all timeframes, and a daily RSI divergence has appeared, which is a classic red flag,” Makda said. He noted that gold could face resistance near 168,790, while silver may struggle in the 375,000–400,000 range. (Disclaimer: This article is meant solely for informational and educational purposes. The views and opinions expressed are those of individual analysts or brokerage firms and do not reflect the stance of Times Now. Readers are advised to consult certified financial experts before making any investment decisions.)
