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Silver surged 6.4 percent to 110.60 dollars an ounce amid US tariff tensions and a weak dollar, outperforming gold and prompting volatility, says Motilal Oswal Financial Services Ltd.
By Anshul January 27, 2026, 7:52:48 AM IST (Published)
2 Min Read
Silver prices surged on Tuesday (January 27) as investors turned to precious metals amid rising global uncertainty, a weaker US dollar, and renewed trade tensions triggered by fresh tariff announcements from the United States.
Spot silver climbed 6.4% to $110.60 an ounce, moving closer to its recent record high of $117.70 set a day earlier. The sharp move came alongside gains in gold, as markets weighed geopolitical risks and policy uncertainty linked to US President Donald Trump’s latest tariff actions against South Korea.
Market participants said silver benefited from broader safe-haven demand as well as currency movements. The US dollar hovered near multi-month lows, improving the appeal of dollar-denominated commodities for overseas buyers.
Silver’s recent surge adds to an already exceptional rally.
The metal has delivered gains of over 200% in the past 12 months, making it one of the strongest-performing assets globally and significantly outperforming gold over the same period, according to a recent Commodities Insight report by Motilal Oswal Financial Services Ltd. (MOFSL).
The sharp rise has compressed the gold–silver ratio from pandemic-era highs of 127 to around 50 at the start of 2026, indicating how aggressively silver has outpaced gold. Analysts said such rapid price appreciation has also increased near-term volatility.
MOFSL noted that while silver’s long-term outlook remains constructive—supported by industrial demand and tight physical market conditions—the near-term risk-reward profile has become more challenging after the steep rally. The report highlighted that silver prices have already moved sharply, increasing the likelihood of consolidation or portfolio rebalancing at elevated levels.
Flows data also point to caution in the near term.
Global silver exchange-traded funds have seen outflows of more than 3 million ounces since the start of 2026, even as physical market tightness persists. Shanghai premiums remain $10–11 above COMEX, while MCX prices continue to trade at a premium of over 10%, reflecting supply constraints.
