Silver Hits $100 as Safe-Haven Demand Surges

Silver prices surged to a historic high of $100 per troy ounce on January 23, driven by heightened geopolitical tensions and growing concerns over global financial stability. Spot silver jumped more than 4% in a single session, while March futures settled at $100.06, reflecting strong speculative and hedging demand as investors sought refuge in precious metals.

The rally extended across the broader precious metals complex. Spot gold climbed to a record $4,967.48 per ounce, hovering near the key $5,000 level, while December gold futures traded close to $4,955. Market participants cited geopolitical strains, stalled efforts to end the Ukraine conflict, and rising uncertainty over the independence of major central banks—particularly the US Federal Reserve—as key factors driving safe-haven flows.

Silver’s sharp rise has significantly altered the gold-to-silver ratio, which has narrowed to 50 from nearly 100 a year ago, highlighting silver’s strong outperformance. While investors expect prices to remain supported if geopolitical and monetary risks persist, analysts warn that the rapid pace of gains could lead to bouts of volatility and profit-taking.

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