The demand for safe-haven assets remained strong in the face of growing geopolitical and trade tensions, and reports that US prosecutors are looking into Fed Chair Jerome Powell further increased market uncertainty. As a result, gold and silver prices began the week on a high note, reaching new all-time highs.
Gold & Silver Price Rally on MCX
From the previous close of ₹1,38,819, the February gold futures on MCX began higher at ₹1,39,600 per 10 kilos. Building on the trend, they reached a new record high of ₹1,42,340 (a ₹3,521 increase), surpassing ₹1.41 lakh for the first time. Additionally, the rise has helped the stock gain 4.76% thus far in January. Similarly, spot gold prices hit a new high of $4,611 per ounce, which is 2.2% more than the previous closing of $4,509.
Silver Futures & Global Performance
The March delivery silver futures on MCX began the week with a significant increase of ₹15,532 per kilogram, setting a new record high of ₹2,68,257 after rising 7% previous week. The first nine trading sessions of 2026 saw a 14% increase as a result of this.
After soaring 148% in 2025, spot silver prices on the global market increased by as much as 7% to a new high of $85.49 per ounce, leading to a 19.15% increase in January thus far.
Profit Booking & Market Momentum
Both gold and silver witnessed significant profit taking in previous sessions, but they both rapidly recovered in later trade, building on the enormous 2025 gain.
In its most recent analysis, domestic brokerage Motilal Oswal predicts that silver and gold prices will continue to rise in 2026. It sets a goal of ₹3,20,000 per kilogram for MCX silver and places the risk-negation threshold at ₹1,40,000. The company predicts that the MCX prices for gold will hit ₹1,60,000.
Geopolitical Tensions & Safe-Haven Demand
Geopolitical difficulties surrounding trade relations between China and Japan, the US detention of Venezuela’s government, new tariff-related conflicts, and a criminal investigation into Federal Reserve Chair Jerome Powell seem to have strengthened the attraction of precious metals as a safe haven.
Tensions in Iran have escalated in the Middle East, with people crowding the streets of Tehran, the country’s capital, as anti-government demonstrations grew more intense on Saturday night amid a nationwide internet outage and a crackdown by the Ayatollah Ali Khamenei-led government, Mint previously reported.
US Dollar Movements & Economic Data
As tensions with the Trump administration increased, US prosecutors launched a criminal investigation against Federal Reserve Chair Jerome Powell, causing the US dollar to drop the most in three weeks on Monday, according to Reuters.
The dollar index, which gauges the strength of the US dollar relative to a basket of six other currencies, was last down 0.5% at 98.67, ending a five-day winning run and lowering the cost of dollar-priced goods for holders of other currencies.
The most recent US employment report sent conflicting signals about the state of the greatest economy in the world and offered no insight into the future course of rate reduction by the US Federal Reserve.
One of the last important economic data points before the Federal Reserve’s next monetary policy meeting at the end of January is the US consumer price index for December, which traders will be eagerly monitoring.
Frequently Asked Questions
1. Why are the prices of gold and silver now at all-time highs?
Investors have turned to non-yielding commodities like gold and silver due to a combination of growing geopolitical concerns, safe-haven purchasing, poor currency movements, and market uncertainty.
2. What impact does news about the US Fed or Fed Chair have on gold and silver?
Uncertainty in the market, such as rumors of a Justice Department investigation of the Fed Chair, frequently devalues the US currency and increases demand for safe havens, which raises the price of precious metals.
3. Are these costs exclusive to India or are they also available worldwide?
The worldwide strength of the gold and silver markets is shown by the fact that both local (MCX) and foreign prices are at or close to record highs.
4. Do gold and silver prices benefit from a declining dollar?
Indeed. A depreciating dollar increases demand and drives up prices by making dollar-priced goods more affordable for overseas consumers.
5. After such dramatic rises, should investors anticipate corrections?
Although sharp gains sometimes result in brief declines and profit booking, widespread economic uncertainty may keep the rise going. (This is not financial advice; it is market context based on patterns.)
📈 Gold & Silver Record Rally
- Gold MCX High: ₹1,42,340 per 10g
- Spot Gold: $4,611 per ounce
- Silver MCX High: ₹2,68,257 per kg
- Spot Silver: $85.49 per ounce
- January Gains: Gold +4.76%, Silver +19.15%
⚠️ Geopolitical & Market Drivers
- Drivers: China–Japan trade tensions, US-Venezuela conflict, Iran protests
- US Fed Impact: Powell investigation, USD drop
- Market Effect: Safe-haven demand boosted
- Industrial Demand: Silver outperforms due to both investment & industry
- Risk Consideration: Expect brief profit booking but uptrend may continue
Conclusion
As investors seek protection under geopolitical tension, economic uncertainty, and dollar weakness, gold and silver continue to shine in early 2026, reaching new all-time highs both domestically and internationally. While gold continues to be the conventional hedge during uncertain times, silver’s superior performance this month is a result of both significant industrial interest and safe-haven demand.
Keeping a watch on US economic statistics, Fed policy signals, and geopolitical events will be crucial to predicting future price moves whether you are monitoring commodities or making investment plans.
Disclaimer
This article is for informational purposes only. Prices and market views are subject to change. It does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
