Gold, silver rates at all-time high in India: Key factors at play

Gold and silver futures in India surged to all-time high on Tuesday (January 27), tracking strong gains in overseas markets and drawing additional support from the rupee’s slide toward an all-time low.

On the Multi Commodity Exchange (MCX), gold futures rose 2.4% to an all-time high of ₹1.59 lakh per 10 grams in early trade. Silver futures jumped 6% to an all-time high of ₹3.54 lakh per kg.

Dealers said domestic prices followed a global rally in bullion

, as investors continued to seek safe-haven assets amid escalating geopolitical tensions and renewed trade uncertainty. Internationally, spot gold traded near record levels after breaching the $5,100 per ounce mark earlier this week, while silver hovered close to recent all-time highs.

Market participants also pointed to currency movements as a key driver for domestic prices. The weakness in the Indian rupee amplified gains in MCX contracts, making imported commodities such as gold and silver more expensive in local terms.

Rahul Kalantri, Vice President–Commodities at Mehta Equities, said rising geopolitical risks and tariff-related tensions have strengthened demand for precious metals, while concerns over fiscal discipline and policy credibility have weighed on confidence in currencies and sovereign bonds.

He added that investors have increased allocations to bullion as a hedge against macroeconomic uncertainty.

Globally, spot gold rose 0.9% to around $5,060 per ounce, after touching am all-time high in the previous session, while spot silver traded above $108 per ounce, extending its strong rally this year. Analysts said expectations that the US Federal Reserve will hold interest rates steady, along with pressure on the US dollar, have further supported bullion prices.

In the near term, analysts expect domestic gold and silver prices to remain sensitive to global risk sentiment, currency movements, and developments around US trade policy and central bank actions.

-With agencies inputs