Silver prices skyrocket over 60% in 2026, gold adds 20%; check key factors driving this bull run

Silver prices skyrocketed to cross the ₹3.8 lakh per kg mark for the first time, rallying for the fourth consecutive day, boosted by a weaker US dollar and heightened safe-haven demand.

On the Multi Commodity Exchange, silver contracts for March delivery increased by ₹26,821 (7.5%) to a new record high of ₹3,83,100 per kg on Wednesday, January 28.

In the last three sessions, silver has added ₹55,811 per kg (17.05%), rising from ₹3,27,289 per kg on January 22.

Meanwhile, gold futures for February expiry rose by 4.5% (₹7,201) to a new lifetime high of ₹1,64,900 per 10 gram on the MCX. 

So far this month, silver has grown by as much as 60.29% from ₹2,39,000 per kg on January 1, 2026. Gold, on the other hand, has added ₹25,786 since the start of this year, rising by 19.7% from ₹1,37,700 per 10 gram on January 1. 

Gold futures for April expiry also jumped to a new record high of ₹1,73,750 per 10 gram, soaring 3.4% (₹5,829) on the MCX on Wednesday. 

As per analysts, a sharp fall in the US dollar, renewed geopolitical tensions and persistent investor demand supported bullion prices. 

International markets

In international markets, silver futures for March delivery on Comex added $9.57, rising by over 9% to $115.52 per ounce after touching a record high of $117.70 per ounce on Monday.

Comex gold futures for February delivery increased by $168.5 (3.31%) to a record high of $5,251.1 per ounce, crossing the $5,200 per ounce mark for the first time in the overseas markets on Wednesday. 

"Gold broke through $5,200 for the first time, after rising more than 3% in the early morning trade, as the dollar plunged to a near four-year low amid persisting geopolitical concerns, ahead of a US Federal Reserve monetary policy decision," a PTI report quoted Manav Modi, Commodities Analyst, Motilal Oswal Financial Services Ltd, as saying.

The US dollar was grappling with a "crisis of confidence," struggling near four-year lows, after US President Donald Trump said the currency's value is ‘great’ when asked whether he thought it had declined too much, Modi suggested. He added that Trump’s remarks triggered further dollar selling, lifting gold and silver prices.

In Delhi, silver prices climbed to a record high of ₹3,70,000 per kg on Tuesday, January 27, adding ₹40,500, rising by 12.3% in just one session. Gold prices (99.9% purity, 24K) touched a fresh peak of ₹1,66,000 per 10 gram after closing at ₹1,58,700 per 10 gram on Monday, rising by ₹7,300 (4.6%). 

What’s driving this bull run?

Gold and silver are at new lifetime highs due to strong safe-haven demand for the precious metals.

Both gold and silver are safe-haven assets; their demand rises during uncertain times like intensified geopolitical tensions, falling currencies and fluctuating markets. 

A four-year low for the US dollar resulting in a ‘crisis of confidence’, Trump’s remarks on the currency, the upcoming Federal Open Market Committee (FOMC) meeting with rising hopes for more rate cuts, post-meeting statement and comments by Federal Reserve Chair Jerome Powell, among other factors, are driving the bull run this week. 

Furthermore, data showing that US consumer confidence fell to a historic low in over 11 years in January 2026, amid a sluggish labor market and high prices, contributed to the upward trajectory of precious metals. 

Last week, gold and silver futures on the MCX rose by up to 18% due to heightened geopolitical tensions. 

In the coming days, traders will closely monitor the US Fed meeting for its impact on the outlook for gold and silver in the near future.

To add to the mounting anxiety, President Trump said he will soon announce his pick to serve as the US central bank chief, and predicted interest rates would fall once the new chair takes office. Trump’s remarks further fuelled market speculation about the outlook for precious metal prices.