Silver prices have achieved an unprecedented milestone by reaching $100.00 per ounce for the first time in trading history. This historic price level represents a significant breakthrough for the precious metal, which has long traded at substantially lower levels compared to gold.

Historic Price Achievement

The spot silver price reaching $100.00 per ounce marks a watershed moment in precious metals trading. This price level represents both a psychological and technical barrier that silver has never previously achieved in its trading history.

Market Implications

This historic price achievement positions silver at a remarkable valuation milestone. The $100.00 per ounce level represents a significant development for precious metals investors and market participants who have tracked silver's price movements over time.

The achievement of this price milestone demonstrates the potential for precious metals to reach significant valuation levels. Market participants and investors in the silver sector are witnessing this unprecedented price development in real-time trading conditions.

Gold has reached a fresh all-time high, touching more than ₹1.60 lakh per 10 grams (24K) as of Friday, continuing its remarkable rally that has seen the precious metal surge nearly 93% over the past year. The yellow metal's performance reflects its traditional role as a safe haven asset during periods of uncertainty, with investors flocking to gold amid various market challenges including rupee weakness, foreign institutional investor outflows, and geopolitical tensions.

ETF Rebound Signals Strong Market Interest

Gold and silver exchange-traded funds (ETFs) staged a sharp rebound on January 23rd, rising by as much as 17% after a brief correction. This bounce occurred just one day after a steep fall following a record rally, as tariff worries eased among investors.

While ETFs remain below their recent peaks, the underlying precious metals have continued racing to new lifetime highs, demonstrating the sustained demand for these assets.

Goldman Sachs Raises Price Target Significantly

The powerful rally has received strong validation from Goldman Sachs, which raised its end-2026 gold price target to $5,400 per ounce, equivalent to approximately ₹1.75 lakh per 10 grams. This represents a notable upgrade from the investment bank's earlier forecast of $4,900 per ounce (about ₹1.59 lakh per 10 grams).

The more-than-10% upward revision reflects what Goldman Sachs identifies as a structural shift in demand patterns, with the brokerage believing that private investors and emerging-market central banks are steadily diversifying away from traditional reserve assets.

Key Demand Drivers Supporting Higher Prices

Goldman Sachs' optimism rests heavily on several fundamental factors driving sustained demand. Private-sector investors are increasingly using gold as a hedge against global policy uncertainty and are unlikely to unwind these positions anytime soon, particularly heading into 2026. This consistent demand has repeatedly pushed prices beyond earlier estimates, effectively lifting gold's base level for long-term pricing.

Support is also expected from Western markets, where gold-backed ETFs previously experienced outflows during high interest-rate phases. These funds could witness renewed inflows as the Federal Reserve pivots toward easier monetary policy, with Goldman Sachs expecting the Fed to cut rates by around 50 basis points in 2026.

Central bank purchases remain another key pillar of support:

• Goldman Sachs projects average purchases of about 60 tonnes in 2026
• Demand largely driven by emerging economies
• Focus on reserve diversification amid geopolitical tensions
• Response to shifting global power dynamics

Potential Risks and Market Outlook

Despite the bullish outlook, Goldman Sachs has identified potential risks that could impact gold's trajectory. If long-term uncertainty around global monetary policy fades, it could trigger profit-taking by macro investors, potentially weighing on prices and diminishing some of gold's rally momentum.

The precious metal continues to benefit from strong momentum, supportive macroeconomic conditions, and institutional interest. However, its outlook will likely remain sensitive to shifts in global monetary policy, investor risk appetite, and geopolitical developments going forward.