Silver price hit a fresh all-time high of $120 per ounce on Thursday, January 29, 2026, extending its extraordinary rally to 65% in January alone, while gold surged past $5,600 per ounce.
Citigroup predicts silver will reach $150 within three months, calling the white metal "gold on steroids" as Chinese buying momentum and dollar weakness fuel unprecedented precious metals gains.
In this article, I am answering the question why gold and silver price is going up today, analyzing XAU/USD and XAG/USD charts and check the newest silver price predictions.
Silver Price Smashes Records With 65% Monthly Gain
Silver is trading at $117.63 per ounce as of Thursday morning, up 0.9% on the day after testing the $120 level, a staggering 272% gain compared to the same time last year. The metal has delivered its best January performance in decades, surging from under $30 per ounce in early 2025 to current record levels.
Silver's 2026 Performance:
- Daily gain: +0.9% to $117.63
- January 2026: +65% (from $31.60 to $120)
- Year-over-year: +272%
- Month-over-month: +54.4%
- 2025 performance: +150%
The rally has been so extreme that India's MCX silver contracts traded near Rs 3.80 lakh per kilogram, up Rs 1.42 lakh since January 1—a nearly 60% jump in less than a month.
Gold Breaks $5,600 as Fed Holds Rates
Gold extended its own historic rally Thursday, briefly touching $5,584 per ounce—its first time above $5,600—before settling around $5,523, up nearly 2% on the day. The yellow metal has gained almost 30% year-to-date after surging 65% throughout 2025, significantly outperforming traditional assets like the S&P 500.
Metal | Current Price | Daily Gain | January 2026 | 2025 Performance | Year-over-Year |
Silver | $117.63 | +0.9% | +65% | +150% | +272% |
Gold | $5,523 | +1.7% | +30% | +65% | +97% |
Gold's advance came despite the Federal Reserve holding interest rates unchanged at 3.50%-3.75% on Wednesday, with Chair Jerome Powell striking a cautious but dovish tone that markets interpreted as opening the door for eventual rate cuts.
Follow me on X for more gold and silver market analysis: @ChmielDk
Citi's "Gold on Steroids" Silver Price Prediction
Citigroup's commodity analysts, led by Max Layton, issued a bold forecast this week predicting silver will surge to $150 per ounce within the next three months. The bank describes silver as behaving like "gold squared" or "gold on steroids," expecting the rally to continue until silver looks expensive by historical standards relative to gold.
The rationale behind Citi's aggressive target includes:
- Chinese buying momentum: Strong physical demand continues with no signs of slowing
- Supply constraints: Higher prices needed to encourage existing holders to sell
- Gold-silver ratio compression: If the ratio returns to the 2011 low of 32:1, silver could reach $170 per ounce
- Structural tightness: Market dynamics showing persistent supply-demand imbalances
"Silver is behaving like 'gold squared' or 'gold on steroids,' and we think this likely continues until silver looks expensive by historical standards, relative to gold," Citi analysts wrote.
Although the forecast is quite bullish, it is not the highest in recent weeks. Robert Kiyosaki is forecasting $200 per ounce this year, while Robert Maloney said $375 in 2026.
The current gold-silver ratio sits around 47:1. A return to the 2011 extreme of 32:1, when silver last experienced a parabolic rally, would mathematically support silver at $170 per ounce given gold's current levels.
Check also my previous articles and analyses on gold and silver:
- Record Silver Price And Volatility Force OANDA Japan to Slash Leverage, Order Sizes
- Why Gold Is Surging and Why Silver Price Today Slashed XAU/XAG Ratio by 50%
- Why Gold Will Hit $10,000? This New Gold Price Prediction Sees the Yellow Metal Doubling
Why Silver Is Surging? 5 Key Drivers Behind the Precious Metals Surge
1. Dollar Collapse to Four-Year Lows
The US dollar has plunged to its lowest level since early 2022, with the DXY index failing to sustain rebounds above 96.33 resistance. President Trump's comments suggesting administration comfort with dollar weakness, combined with tariff threats and Fed pressure, have accelerated the greenback's decline.
According to Abdelaziz Albogdady, Market Research & Fintech Strategy Manager at FXEM: "Gold continued to climb on Thursday, breaking yet another record as a weaker US dollar and persistent geopolitical tensions reinforced demand for safe-haven assets. The dollar remains under pressure while ongoing tariff uncertainty and growing concerns about the Federal Reserve's independence boost demand for gold."
2. Fed's Dovish Pivot Under Powell
Wednesday's FOMC meeting brought no policy changes, but Powell's post-meeting remarks triggered significant market repricing. Dilin Wu, Research Strategist at Pepperstone, notes: "Powell's dovish pivot supports gold. On inflation, he softened his prior stance on 'maintaining high rates for longer,' instead emphasizing the trend of falling inflation and acknowledging that policy is already 'sufficiently restrictive.'"
Powell suggested that if tariff-driven inflation remains contained, more accommodative policy could be considered—indicating the Fed's reaction function is shifting from fighting inflation toward preventing a slowdown.
3. China's Silver Buying and Export Restrictions
China, one of the world's largest suppliers of refined silver, began enforcing new export restrictions this year, a move analysts believe aims to protect domestic manufacturers from rising costs. The restrictions have tightened global supply while Chinese investors pile into silver investments.
Evidence of Chinese demand intensity includes:
- Pure-play silver funds in China suspended trading after premiums surged well above net asset value
- Manufacturers shifting production from jewelry to 1-kilogram investment bars
- Persistent physical buying despite record-high prices
4. Industrial Demand for AI and Green Technology
Unlike gold, silver has extensive industrial applications that account for roughly half of annual demand. The metal is critical for:
- AI infrastructure: Data centers and high-performance computing
- Solar panels: Photovoltaic cell production
- Electric vehicles: Battery and electronic systems
- 5G networks: Enhanced conductivity requirements
- Defense equipment: Advanced electronics and radar systems
"Silver is needed in many industrial processes," Elon Musk wrote on X in late December, responding to China's export limitations, highlighting the metal's economic importance.
Higher silver costs could weigh on profit margins across these sectors or force companies to raise prices, potentially adding to inflation pressures over time.
5. Safe-Haven Flows Amid Geopolitical Uncertainty
Multiple risk factors continue driving investors toward precious metals:
- Middle East tensions: Ongoing conflicts and regional instability
- US-China trade frictions: Tariff threats and retaliatory measures
- Government shutdown risk: Congressional negotiations remain uncertain
- Central bank diversification: Foreign central banks reducing US Treasury holdings to 2013 lows
"Rising tensions in the Middle East and the ongoing risks in Eastern Europe continue to cloud the global outlook," adds Albogdady from FXEM. "Taken together, a weaker dollar, political uncertainty, and persistent geopolitical risks keep the near- and medium-term outlook for gold firmly bullish."
Silver and Gold Technical Analysis: Price Discovery Phase
As a technical analyst, I've identified that both silver and gold have entered a clear price discovery phase, making traditional analysis challenging. However, several key levels emerge:
Silver Technical Levels
- Current price: $118 testing $120 record high
- Critical support: $100 psychological level (first major floor)
- Trend structure: Strongly bullish with no clear resistance until Citi's $150 target
- Moving averages: Price significantly extended from all major EMAs
Gold Technical Levels
- Current price: $5,523 after testing $5,600
- Key support levels:
- $5,000: Psychological round number (primary support)
- $4,550: 50-day EMA and December 2025 highs
- $4,374-4,273: October 2025 peaks and December lows
- Short-term targets: $5,670-5,700 on close above $5,600
- Pullback support: $5,420 intraday low
Both metals have moved approximately 30% above their 200-day exponential moving averages, an extreme deviation that typically triggers corrections under normal market conditions. However, the convergence of geopolitical tensions, dollar weakness, and persistent buying has kept momentum strongly positive.
Expert Warning: Volatility and Bubble Dynamics
Despite bullish forecasts, several analysts are raising caution flags. Bank of America ranked silver highest for "bubblelike asset dynamics" in a recent analysis of stocks, commodities, and cryptocurrencies, placing it just ahead of gold.
Dilin Wu from Pepperstone emphasizes risk management: "While the trend remains bullish, gold is now trading at elevated levels with high volatility, requiring traders to avoid overconfidence. One-month implied volatility is currently around 26%, suggesting that gold could move roughly ±7.5% over the next month. equivalent to a potential $750 trading range."
He adds: "In such a volatile environment, position sizing and risk management are more critical than directional bets and warrant extra caution from traders."
Marc Loeffert, trader at Heraeus Precious Metals, warned: "History suggests that this rally is much nearer to its end than its beginning. The gold/silver ratio has been lower than today several times in the past but has rarely seen such a large swing in such a short time."
Analysts at Sucden Financial wrote: "We remain cautious about how much further the rally can extend and see the potential for a sharp, rapid reversal if sentiment shifts decisively."
Silver Price Analysis, FAQ
What is the silver price today?
Silver is trading at $117.63 per ounce as of Thursday, January 29, 2026, after hitting an all-time high of $120 earlier in the session.
Why is silver surging with gold?
Silver is surging due to dollar weakness (four-year lows), Chinese buying momentum, China's export restrictions, Fed dovish pivot, safe-haven demand from geopolitical tensions, and robust industrial demand for AI infrastructure, solar panels, and electric vehicles.
Will silver surge in 2026?
Citigroup predicts silver will reach $150 per ounce within the next three months, with potential to hit $170 if the gold-silver ratio returns to its 2011 low of 32:1.
How high can silver go?
While Citi targets $150-170, analysts warn the rally shows bubble-like characteristics. Bank of America ranks silver highest for "bubblelike asset dynamics," suggesting caution despite bullish momentum.
Should I buy silver now?
Silver has gained 65% in January alone and is trading 30% above key moving averages—levels that typically see corrections. While structural drivers remain bullish (dollar weakness, Chinese demand, industrial needs), volatility is extreme with potential for sharp reversals. Investors should carefully consider risk tolerance and position sizing rather than chasing momentum. Consult financial advisors before making investment decisions.
