Gold and silver are on a powerful upswing, with prices climbing at a pace rarely seen in recent years, as investors across the world rush for safety amid mounting uncertainty. On Wednesday, gold on MCX was trading at Rs 1,78,986 per 10 grams at 10:45 pm, January 29, while silver surged to Rs 4,06,222 per kg, reflecting intense buying interest driven by currency worries, global bond stress and renewed geopolitical tensions, according to insights from Motilal Oswal Financial Services.

One of the biggest reasons behind the rally is growing discomfort with the U.S. dollar. The greenback has slipped close to multi-year lows, unsettling global investors who traditionally rely on it as a safe store of value. Comments from U.S. President Donald Trump suggesting that a weaker dollar is acceptable and that interest rates could fall further under a new Federal Reserve leadership have added to the unease. Gold was one of the main beneficiaries, crossing key price levels and attracting fresh buying interest.

Fresh unease also came from Japan. Government bonds there, usually viewed as among the safest in the world, came under selling pressure. The moves unsettled investors, especially after reports suggested the U.S. and Japan could jointly step in to support the yen – a step last taken during the 2011 crisis. Developments like these tend to make investors cautious, prompting them to cut back on riskier bets and move towards assets such as gold and silver.

Silver, however, is rising for more than just safe-haven reasons. While gold has moved up steadily, silver prices have climbed faster, helped by tightening physical supply. In several markets, buyers are paying higher premiums over benchmark prices, a sign that readily available silver is becoming harder to find.

This imbalance between paper prices and physical availability has fuelled sharp price swings on exchanges, including MCX, making silver more volatile but also more attractive for traders betting on continued tightness.

Geopolitical tensions have also helped push prices higher. Fresh trade warnings from the U.S., including talk of higher tariffs on Canada and South Korea, have brought trade war worries back into focus. Whenever that happens, investors tend to get cautious.

Big investors are also slowly coming back to gold. This has given the rally more support, instead of it being driven only by short-term trades. Silver has cooled a bit after its sharp rise, with some traders booking profits. But the overall direction has not changed.

According to Motilal Oswal, gold’s broader trend remains positive despite near-term fluctuations, while silver is likely to stay volatile due to sharp price swings and thin liquidity. For investors, the current rally underlines one clear message – in an uncertain world, the rush towards hard assets is far from over.