gold and silver are rewriting record books, and the reason behind this explosive rally is a rapidly weakening US dollar combined with mounting policy chaos in Washington. Gold touched a fresh all-time high of $5,258 per ounce on Wednesday, gaining over 3 per cent, while silver surged 8.5 per cent to $113.6. In India, mcx gold hit ₹1,62,500 and silver crossed the psychological ₹4 lakh mark in Hyderabad, jumping ₹1,44,000 in just 28 days.
The dollar has collapsed to a four-year low, and President Trump seems fine with it. When asked if the dollar had declined too much, Trump simply said “the value of the dollar was ‘great’.” He also signaled plans to announce a new Federal Reserve chair nominee, suggesting “interest rates would decline under new leadership”—a comment that sent shockwaves through currency markets and pushed investors toward safe-haven assets.
Renisha Chainani, head of research at Augmont, explains the shift: “Gold’s break above $5200 and silver’s surge past $115 mark a decisive escalation in the precious metals rally, driven primarily by a sharp weakening of the US dollar and rising policy uncertainty.” She adds that “tariff threats and perceived pressure on Fed independence have amplified geopolitical and policy risk premiums—firmly underpinning gold and silver prices.”
The numbers tell a grim story for the dollar: US consumer confidence plunged to an 11-year low in January amid fears of a slowing labor market. Trade tensions escalated with the US threatening a 25 per cent tariffs on South Korea, while investors worry about a possible government shutdown ahead of the January 30 funding deadline.
On the supply side, silver’s rally has been turbo-charged by industrial demand. “Demand from solar, EVs, AI/data centres, and electronics remains exceptionally strong,” says Ponmudi R, CEO of Enrich Money, highlighting “persistent supply deficits” driving prices higher.
Jateen Trivedi of LKP Securities notes immediate “resistance…near ₹1,62,500, while strong support is placed around ₹1,55,000” for MCX gold. Chainani projects gold moving towards $5,300 (₹1,65,000) and silver resuming higher towards $120 (₹3,90,000).
Central banks continue accumulating gold aggressively, while ETF inflows remain steady, helping gold gain nearly 20 per cent in 2026 alone, with silver outpacing even that blistering pace.
Published on January 28, 2026