London, January 29, 2026, 11:11 (GMT) — Regular session
- Silver spiked above $120 an ounce, hitting a new record, before slipping back down
- Demand for precious metals held steady, supported by a softer dollar and ongoing geopolitical tensions
- Traders are eyeing U.S. policy signals alongside next week’s jobs report for hints on possible rate cuts
Silver soared past $120 an ounce on Thursday before trimming some gains, buoyed by safe-haven demand amid rising U.S.-Iran tensions, a weaker dollar, and bets on further U.S. interest-rate cuts this year. By 0947 GMT, spot silver edged up 0.7% to $117.42 after peaking at $120.45. The metal has climbed nearly 64% in 2026 so far. “Silver’s squeeze means $130 is in sight,” said Jamie Dutta, market analyst at Nemo.money. 1
Silver’s price is caught between two forces: a safe haven when risk spikes, and a key material for electronics and solar industries. This dual role means silver often reacts more sharply than gold, especially when investors pile into momentum trades.
Investors fleeing risk have driven precious metals to new highs this week, flocking to so-called “safe-haven” assets where cash is stashed amid broader losses. Silver’s retreat from earlier gains today highlighted just how fast those bets can reverse.
The metal has been on a rollercoaster this week. Spot silver surged 7.7% on Tuesday, closing at $111.84 after hitting a record $117.69 the day before. Citi responded by hiking its short-term silver forecast to $150 an ounce, up from $100, according to Reuters. Bank of America’s Michael Widmer cautioned about potential “sharp pullbacks” but noted that strong fundamentals and ETF inflows could still push prices significantly higher. 2
On Wednesday, the Federal Reserve kept its benchmark rate steady between 3.50% and 3.75%, despite two policymakers voting to lower it. “The economy has once again surprised us with its strength,” Fed Chair Jerome Powell remarked. Economists at Oxford Economics are now predicting an “extended pause” before rates shift again. 3
Investors are closely tracking Washington as the Fed chair appointment looms, a move that could set the policy tone before the June meeting. Treasury Secretary Scott Bessent revealed he had lengthy discussions with President Donald Trump about the nomination. Four candidates remain in the mix, but the timing of the decision remains uncertain, Reuters reports. 4
The rally in silver is part of a wider metals upswing. Copper topped $14,000 a tonne for the first time, while gold and silver saw renewed inflows amid a softer dollar, the Financial Times reported. Analysts warn some positions may be getting ahead of actual physical demand in segments of the market. 5
Silver’s volatility works both ways. A stronger dollar or rising yields can slam non-interest-bearing metals fast, while any easing in geopolitical tensions can erase the safe-haven appeal just as swiftly as it showed up.
Traders are turning their attention to concrete signals from the U.S. economy: the January jobs report arrives on Feb. 6, followed by U.S. consumer price inflation data on Feb. 11. Both will heavily influence market expectations for the Fed’s next move. 6
