New York, Jan 27, 2026, 06:03 (EST) — Premarket
- Silver prices surged again in early trading, hovering close to the record highs reached on Monday.
- With the Fed’s Jan. 27–28 meeting looming, traders are on edge as Washington policy risks rattle currencies and metals.
- Analysts caution that high prices might dampen industrial demand and ramp up volatility.
Silver prices surged on Tuesday, with spot silver climbing 8.4% to $112.57 per troy ounce by 10:12 a.m. GMT, after touching a record $117.69 the day before. Gold also gained, rising 1.6% to $5,092.09 as investors sought refuge in safe havens. “The constant back and forth on tariffs … is unlikely to curb safe-haven demand anytime soon,” said Zain Vawda, an analyst at MarketPulse by OANDA. (Reuters)
The move comes as traders gear up for the Federal Reserve’s two-day policy meeting on Jan. 27–28, a key event shaping bets on rates, the dollar, and precious metals. Silver often sees big moves that ripple through the broader market, caught between bullion demand and significant industrial usage. (Federal Reserve)
Silver’s rally has been fueled further by retail and momentum-driven buying, squeezing an already tight physical market after prices breached $100 late last week. “Momentum is strong,” said UBS analyst Giovanni Staunovo, noting Chinese prices are trading at a premium to London. He added that “such high prices should reduce industrial demand.” (Reuters)
Comex futures and silver-backed ETFs have been net sellers in the past month, shifting demand to coins and bars — with China picking up much of the slack, Ole Hansen, Saxo Bank’s commodity strategy chief, noted Monday. He highlighted Shanghai premiums exceeding $14 above London prices, suggesting traders may feel Western prices remain undervalued. BMI also cited lease rates close to 3%, reflecting ongoing tightness in the market. (Business Insider)
Silver’s industrial role plays a crucial part as well. The metal is heavily used in electronics and solar panels, so a quick price surge can outpace the actual demand from these sectors.
China is heading into a lengthy holiday stretch that could sap liquidity in regional markets. The Shanghai Futures Exchange announced it will shut down for the Spring Festival from Feb. 15 through Feb. 23, reopening on Feb. 24. Notably, there will be no continuous trading on Feb. 13. (Shanghai Futures Exchange)
In the U.S., the Fed meeting is caught up in political crosscurrents, fueling a flight to safety. Reuters reports the central bank will likely keep rates steady between 3.50% and 3.75%. Investors are focused on Chair Jerome Powell and the White House’s plans for his successor. Tim Duy, chief U.S. economist at SGH Macro Advisors, said, “It’s not possible to view the actions of the next Fed chair as separate from the economic environment.” (Reuters)
Silver’s rally now appears overextended. A stronger dollar, rising bond yields, or any hint that rate cuts are priced in too optimistically might spark heavy profit-taking, particularly following its recent multi-day surge to record levels.
Headline risk is drawing traders’ attention. Tariff threats and geopolitical tensions have been pushing the dollar and risk appetite around daily. Silver is behaving like a high-beta gold, reacting sharply whenever those shocks surface.
Wednesday brings the next major catalyst: the Fed statement drops at 2 p.m. EST on Jan. 28, with Powell’s news conference set for 2:30 p.m. EST, according to the Fed’s calendar.
