Silver Prices Outpaces $110 on January 27 Amid Market Uncertainty and Trade Tensions

Silver prices surged on Tuesday, January 27, as investors sought refuge in precious metals amid rising global uncertainty, a softening US dollar, and renewed trade tensions following fresh tariff announcements from the United States.

Spot silver jumped 6.4% to $110.60 an ounce, inching closer to its recent record high of $117.70 reached just a day earlier. The sharp rally paralleled gains in gold, reflecting heightened market sensitivity to geopolitical risks and policy unpredictability stemming from US President Donald Trump’s latest tariff measures against South Korea.

Rising Silver Prices Key Factors Behind the Gains 

Safe-Haven Demand and Currency Effects

Market observers attributed silver’s strong performance to a combination of safe-haven demand and currency dynamics. The US dollar remained near multi-month lows, enhancing the attractiveness of dollar-denominated commodities for international buyers.

Silver’s meteoric rise adds to an already exceptional rally. Over the past 12 months, the metal has surged more than 200%, emerging as one of the top-performing global assets and markedly outpacing gold as per reports

The rapid ascent has narrowed the gold–silver ratio from pandemic-era highs of 127 to roughly 50 at the start of 2026, signalling how aggressively silver has outstripped gold.

Also Read: Gold Prices Reached All-Time High on January 27: Check Why?

Strong Silver Fundamentals

As per news reports, Silver’s long-term fundamentals remain robust, driven by industrial demand and tight physical supply. The short-term risk-reward balance has become more complex after the steep rally. 

Flows data also hint at caution ahead. Global silver exchange-traded funds have seen outflows exceeding 3 million ounces since the beginning of 2026, even as supply constraints persist in physical markets. Shanghai premiums are holding at $10–11 above COMEX, while MCX prices trade at more than a 10% premium, underscoring ongoing tightness in availability.

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