Silver outshines gold: White metal surges 74% to Rs 4 lakh in January; key reasons

In what is shaping up to be a historic month for commodities, white metal is shining brighter than yellow metal. Silver continued its relentless rally on Thursday, breaking Rs 4 lakh per kg mark and reaching new all-time highs in both domestic and global markets.

On the Multi Commodity Exchange (MCX), the metal jumped to a staggering lifetime high of Rs 4.09 lakh per kg. Silver has surged 73.8% in January 2026 alone. At the last check, Silver futures was up 4.7% at Rs 4.03 lakh, from its previous close of Rs 3.85 lakh per kg.

While gold is often the preferred safe haven, silver has clearly outperformed its more expensive counterpart this month. The yellow metal has also had a run, with futures prices jumping nearly 39% in January.

Gold prices also scaled new peaks today, hitting an all-time high of Rs 1.9 lakh per 10 grams. 

The explosive surge in silver prices may be attributed to rising geopolitical tensions, trade complexities and booming industrial demand from fast-growing sectors, which is squeezing supplies and driving prices skyward.

Silver’s rally is being driven by sustained industrial demand, with rapid growth in AI infrastructure, data centres, solar power, electric vehicles and advanced electronics providing a strong consumption base, said Ponmudi R, CEO of Enrich Money.

This structural demand, he noted, is colliding with tight supply conditions, as global mine output struggles to keep pace with underlying consumption.

Ponmudi said that safe-haven and inflation-protection flows are adding another layer of support to prices. Momentum-based participation has further intensified the move, with FOMO-led buying kicking in during technical breakouts and amplifying silver’s upside compared to gold.

He said MCX silver continues to show high-beta outperformance after a decisive breakout. The metal has been comfortably absorbing minor corrections, with the rising price channel remaining steep and intact. The 20-day EMA, placed around Rs 3.77 lakh, is acting as a key dynamic support, while sustained trade above Rs 4.07 lakh keeps the broader momentum firmly bullish.

Ponmudi sees immediate upside targets in the Rs 4.08 lakh–Rs 4.15 lakh range, with potential to extend towards Rs 4.17 lakh–Rs 4.25 lakh over the coming months. He added that any corrective dip towards the Rs 3.50 lakh–Rs 3.60 lakh zone is likely to be viewed as an accumulation opportunity within the ongoing uptrend.