Silver prices crossed the $90-per-ounce mark for the first time this week. This is a historic milestone for the precious metal as investors moved decisively towards safe-haven assets amid rising global uncertainty. The sharp rally highlights growing nervousness in financial markets and renewed confidence in bullion as a hedge against economic and political risks.
Spot silver climbed more than 3% during mid-week trade, extending a strong run that began late last year. The metal has gained steadily on expectations that major central banks, led by the US Federal Reserve, may start easing monetary policy later in 2026.
Softer-than-expected US inflation data has strengthened the case for interest rate cuts, reducing the appeal of yield-bearing assets and boosting demand for precious metals.
Gold prices, meanwhile, are relatively stable near their all-time high. Such a price trend confirms the investors' broader turn towards safe assets. Market analysts view that in times of great uncertainty, gold and silver usually rise together, and silver often accounts for a larger share of the move.
Geopolitical tensions have further fueled the rally. Investors have reacted to ongoing conflicts, trade disputes, and concerns about the future of several regions by reducing their exposure to the stock market, which is considered the riskiest asset class. Thus, among the losers in this environment, precious metals have regained their trust as a value-preserving vehicle due to the higher demand.
Apart from investment flows, the fundamentals of the silver market have also been supportive of prices. The industrial sectors that rely on silver, such as renewable energy, electronics, and electric vehicles, have been the strongest contributors to demand.
Moreover, the growth in silver supply has not kept pace with high demand, creating tighter market conditions. Analysts are of the view that the pairing of strong demand and limited supply has led to even greater price increases during periods of investor interest.
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However, market participants are skeptical about the sustainability of the rally. Some are convinced that silver's rise is inevitable if the market is certain of rate cuts, and the geopolitical situation remains uncertain. Price levels that are currently seen by some as trigger points for profit-taking, thereby causing short-term price fluctuations.
The global rally has had a drastic double effect: skyrocketing local prices in India and the other main consuming markets. It has also curbed the demand for jewellery and industrial applications. Silver's remarkable performance as the year 2026 unfolds is an indicator of the change in global market sentiment.