Silver Prices Surge to Record High Amid Trade Tensions

Silver prices have reached an all-time high of $94.740 per ounce on the COMEX exchange, driven by increased demand for safe-haven assets amid escalating trade tensions between the US and Europe. Gold prices are also nearing record levels, reflecting a broader trend in precious metals. Analysts suggest that while profit-taking may occur, the overall outlook remains positive due to ongoing supply concerns and rising industrial demand. Explore the factors influencing these market dynamics and what they mean for investors.

By Narendra Chaudhary Jan 20, 2026, 16:35 IST

Market Overview

Mumbai, Jan 20: Silver prices on the COMEX exchange soared to an unprecedented $94.740 per ounce on Tuesday, driven by a surge in demand for safe-haven assets as trade tensions between the US and Europe escalated. This increase followed President Donald Trump's continued aggressive tariff rhetoric concerning Greenland.

Gold also saw significant gains, with MCX gold futures for February climbing 1.27% to reach Rs 1,47,490 per 10 grams. Concurrently, MCX silver futures for March rose by 1.75%, hitting Rs 3,15,720 per kg.

The spot price of gold peaked at $4,671.54 per ounce, following a record high of $4,689.39 in the previous trading session.

Despite an earlier rally, both metals experienced a slight pullback after Trump's announcement regarding tariffs on eight European nations opposing his Greenland acquisition plans.

On Monday, President Trump did not dismiss the possibility of using force to acquire Greenland and reiterated his commitment to imposing tariffs on goods from European countries.

In response, French President Emmanuel Macron announced intentions to activate the EU’s anti-coercion mechanism against tariff pressures, while German Chancellor Friedrich Merz called for restraint. Additionally, Denmark's decision to bolster its military presence in Greenland has heightened geopolitical tensions.

Market participants are also considering the potential actions of the Trump administration against the Federal Reserve, which has further bolstered precious metals, raising concerns about the central bank's autonomy.

Expectations of further US interest rate cuts are providing additional support for bullion prices, which had already benefited significantly in 2025.

The rally in precious metals is attributed to both safe-haven buying and increased industrial demand for silver, particularly in solar energy, electric vehicles, and electronics. Analysts noted that the technical outlook for COMEX silver remains positive after a breakout, with the $85–$88 range expected to serve as short-term support.

A recent report from Augmont suggested that traders might see some profit-taking and a potential retracement to $84 per ounce or Rs 2,60,000 per kg before prices rise again.

While analysts warned that rapid price increases could lead to profit-taking, the overall sentiment for precious metals remains optimistic due to ongoing supply concerns and increasing industrial usage.