Gold And Silver Smash Records As Investors Flock To Safe Havens

Gold and silver markets are experiencing an extraordinary surge, with both metals shattering historic price records and capturing the world’s attention. On January 26, 2026, gold futures on the Multi Commodity Exchange (MCX) in India closed at ₹1,55,963 per 10 grams, while 24K gold prices hovered near ₹1,59,000 per 10 grams in major Indian cities, according to Meyka AI PTY LTD. But the truly headline-grabbing figure comes from the global stage: gold blasted past the psychologically significant $5,000 per ounce mark for the first time ever, reaching an intraday high of $5,111 per ounce. Silver, not to be outdone, soared through the $100 per ounce threshold and traded as high as $110, marking a historic rally that has left investors, analysts, and even seasoned traders breathless.

What’s powering this surge? Multiple forces are converging. According to Barron's, the rally has been driven by geopolitical uncertainty, mounting concerns about Federal Reserve independence, and renewed fears of a U.S. government shutdown. Technical analysis from Finance Magnates underscores that gold has now logged six consecutive sessions of gains, is up 18% year-to-date in 2026, and added a remarkable 65% throughout 2025. Silver’s performance is even more dramatic, with a 53% gain so far this year following a 50% surge in 2025, and nine straight months of increases.

“Gold emphatically broke through the psychological barrier of $5,000 per ounce,” said Jakub Bartoszek, CEO of Cashify Gold, as quoted by Finance Magnates. “This is a ‘safe haven’ in a completely new form.” He attributed the record to global reactions following signals from the World Economic Forum in Davos and to investor anxieties about Donald Trump’s policy announcements, including his proposal to establish a Peace Council and his controversial plan to purchase Greenland. Bartoszek added, “This record is a direct response from the world to signals from Davos,” and explained that investors are “pricing in risks related to Donald Trump’s announcements: both plans to establish a Peace Council, which could shake the foundations of the UN, and the proposal to purchase Greenland.”

The momentum behind gold has also been fueled by expectations of Federal Reserve rate cuts—150 basis points projected for 2026—dollar weakness, and massive central bank diversification away from U.S. Treasuries. Ray Youssef, founder of NoOnes, told Finance Magnates, “Gold is the primary beneficiary of this market environment. With global debt expanding, yield rates compressing, and central banks still stacking up the precious metal in their reserves, gold’s uptrend remains structurally supported.”

For Indian investors and households, the elevated domestic gold prices are more than just numbers on a screen—they reflect cultural traditions, wedding season demand, and a continued preference for gold as a store of value in uncertain times. On January 26, 2026, 22K gold was trading close to ₹1,46,000 per 10 grams, while 18K gold, favored for modern jewelry, was around ₹1,20,000 per 10 grams, according to Meyka AI PTY LTD. The MCX gold price is shaped by international spot rates, import duties, and the rupee-dollar exchange, with the stable rupee helping to keep local prices firm. India’s gold demand remains steady, especially in January, as consumers prepare for the upcoming festive months.

But it’s not just traditional factors at play. According to Finance Magnates, gold’s rally is also being driven by private investors seeking a hedge against macro policy risks, as well as by institutional flows. Major banks are raising their forecasts: Goldman Sachs now expects gold to reach $5,400 per ounce by December 2026, citing central bank purchases of around 60 tonnes per month and sustained private-sector diversification. Bank of America is even more bullish, projecting $6,000 per ounce by spring 2026, and OCBC Bank forecasts $5,600 by year-end. Among 28 analysts surveyed by the London Bullion Market Association, 22 expect gold to surpass $5,000 in 2026, with some seeing potential for $7,000 per ounce in extended scenarios.

Silver’s ascent is even more dramatic. The gold-to-silver ratio—a popular measure among traders—has plunged to its lowest level in 15 years. Just six months ago, one ounce of gold could buy 120 ounces of silver; today, that figure has dropped to just 46 ounces, the lowest since 2011. Silver’s gains are being fueled by industrial demand, especially from sectors powering the AI era. Bartoszek explained, “Silver breaking through the $100 barrier is not an ordinary price correction, but the result of a global ‘short squeeze’ on physical metal.” He described silver as “becoming for the AI era what oil was for the combustion era, essential and irreplaceable fuel,” pointing to the drastic drainage of LBMA and COMEX vaults as evidence of a market breakthrough that “has overtaken forecasts by entire years.”

Industrial consumption underpins silver’s rally. In 2024, global silver demand hit 680 million ounces, with about 60% used in industrial applications. The ongoing energy transition is forecast to drive even greater demand: solar PV capacity is expected to reach 665 GW in 2026, supporting 120-125 million ounces of silver demand, while electric vehicle production is forecast at 14-15 million units, adding 70-75 million ounces. Grid infrastructure and data centers are set to contribute an additional 15-20 million ounces.

For retail and institutional investors alike, the question is whether to buy gold or silver at these elevated levels. According to Finance Magnates, gold offers safe-haven protection and is supported by central bank demand, while silver provides higher volatility and is driven by industrial demand. Technical analysis identifies key support zones: for gold, between $4,360 and $4,550 per ounce (with the 50-day EMA at $4,115 and the 200-day EMA at $3,800); for silver, a support range between $70 and $81 per ounce, with the 200 EMA at $52.

Kathleen Brooks, Research Director at XTB, posed a provocative question in Finance Magnates: “Is gold the ultimate anti-Trump trade?” She observed, “The dollar is the weakest currency in the G10 FX space so far this year, while the gold price has rallied more than 17%, and is now above $5,000 per ounce.” Brooks concluded that if the U.S.’s radical policy positions are feeding demand for gold, “then the yellow metal could become the ultimate anti-Trump trade.”

Looking ahead, the consensus among analysts is that gold and silver prices are likely to remain supported through 2026, with possible short-term corrections but a strong long-term outlook. The rally’s key drivers—geopolitical risk, monetary policy shifts, industrial demand, and central bank purchases—show no sign of abating. For now, gold and silver remain at the center of global financial conversation, their record-breaking ascent a reflection of a world in flux and the enduring allure of precious metals.