Gold and silver prices continued their record-breaking rally as safe-haven demand surged amid geopolitical tensions, a firm US Federal Reserve stance, and a weaker dollar. In India, gold crossed ₹1.75 lakh per 10 grams, while silver breached ₹4 lakh per kg for the first time.
Gold, Silver Extend Historic Rally Amid Fed Policy, Geopolitical Fears
New Delhi: Amid global geopolitical tensions, a weak dollar, and rising demand for safe havens, both gold and silver hit new records on Thursday. The sharp surge in the international market also reflected the domestic market, where gold rose above ₹1.75 lakh per 10 grams, while silver crossed ₹4 lakh per kg for the first time.
Spot gold prices rose 2.1% to $5,511.79 per ounce, reaching a record high of $5,591.61 during the day. Similarly, spot silver rose 1.3% to $118.06 per ounce and touched a new high of $119.34 during the session. Gold has gained more than 10% this week.
Gold and Silver Prices Surge in Futures Market as Precious Metals Shine on January 28
Following international cues, gold on the MCX touched a new peak of ₹1,75,869 per 10 grams with a gap-up opening. MCX Silver also made a strong start, reaching a record high of ₹4,07,456 per kg. Silver crossed the ₹4 lakh per kg mark for the first time during this period.
According to experts, this surge in gold and silver prices is driven by several factors:
Geopolitical tensions: Escalating tensions between the US and Iran and fears of potential military action have increased demand for safe-haven investments.
Tightening Federal Reserve policy: The US Fed's policy and a soft dollar supported bullion.
Central Bank Purchases: Continued strong buying supported prices.
Investor Demand: Amidst the rising price of gold, investors are increasing their purchases of silver, considering it a cheaper alternative. Supply shortages and momentum buying are also being seen.
Gold prices slip on first day of the week; Silver also sees decline
Gold has risen more than 27% so far this year, compared to a 64% gain in 2025. Silver, meanwhile, has surged more than 60% so far in 2026. This trend suggests that investors are prioritizing precious metals during times of uncertainty.
According to reports, crypto firm Tether has announced plans to invest 10%–15% of its portfolio in physical gold, providing additional support to gold.
Analysts believe that gold and silver may remain at elevated levels as long as geopolitical tensions and economic uncertainties persist. However, investors are advised to adopt a cautious strategy given the sharp fluctuations.
