Silver rate surged about 6% on Wednesday, January 28, and hit a new record in India. The jump lifted Multi Commodity Exchange of India (MCX) silver to ₹3,77,655 per kilogram. It also took prices past ₹3.75 lakh for the first time.
Mint reported that a weak US dollar supported the move and lifted demand for precious metals. Investors also stayed cautious ahead of the US Federal Reserve policy decision and ongoing geopolitical uncertainty.
MCX silver price climbed 6% to ₹3,77,655, Mint said. Traders tracked the move as the greenback traded near multi-year lows. A weaker dollar often supports dollar-denominated commodities by improving affordability for global buyers. Consequently, Mint said the currency move lifted silver and gold across markets.
In overseas trade, spot silver price edged up about 0.6% to $113.63 an ounce. It touched an all-time high of $117.69 earlier in the week, according to Mint.
Mint said silver has rallied close to 60% so far this year. It attributed the rise to strong investment demand, tight supply conditions, and a softer dollar environment.
Gold price today extended its record run in global markets and India. Spot gold rose about 0.6% to $5,219.97 an ounce in early Asian trade, after touching $5,224.95, Mint said. US gold futures for February delivery jumped 2.6% to $5,216.80 an ounce. Meanwhile, the move kept attention on broader safe-haven flows.
Back home, MCX gold February futures rose 1.8% to ₹1,60,509 per 10 grams. Mint said gold prices have climbed more than 20% since the start of the year. Other precious metals prices also moved higher in the same session. Spot platinum gained 1.5% to $2,679.15 an ounce, while palladium rose 0.9% to $1,951.93, according to Mint.
The US dollar hovered near four-year lows, Mint said. Traders cited waning confidence in the currency. Mint also pointed to a sharp fall in US consumer confidence. It fell to the weakest level in more than 11 years.
Markets now focus on the US Federal Reserve January meeting. Mint said investors widely expect unchanged interest rates. Still, markets also priced in the possibility of rate cuts later in the year.
Analysts urged investors to weigh risk carefully after the latest silver rate today spike. Aamir Makda, Commodity and Currency Analyst at Choice Broking, said charts show early warning signs, Mint reported.
Makda said the relative strength index (RSI) sits in overbought territory across timeframes. In addition, he said a daily RSI divergence has appeared, which he described as a classic red flag. He still described the near-term trend as moderately bullish. However, he flagged resistance for gold near 168,790, which he linked to a 78% trend-based Fibonacci extension.
Makda also said silver may face strong resistance in the 375,000 to 400,000 zone. That range sits close to current levels after the latest MCX silver price jump, which can amplify volatility.
Ravi Singh, Chief Research Officer at Master Capital Services, cautioned against treating gold and silver as pure return plays. He said investors should use the metals for risk management and portfolio diversification, given their high volatility.
Singh said precious metals can hedge inflation, currency weakness, and geopolitical uncertainty. Furthermore, he urged investors to limit exposure and rebalance periodically at elevated levels.
Mint said the views and recommendations came from individual analysts or broking companies. The report also advised investors to consult certified experts before taking investment decisions.
Market attention now stays on the Federal Reserve decision, the US dollar path, and geopolitical risks. Traders will also watch resistance zones after record highs in silver rate and gold price.