Gold, silver prices in India hit all-time highs on strong global cues

Gold and silver prices in India rose to new highs on Wednesday (January 28), tracking record gains in global markets amid heightened geopolitical uncertainty, a weaker US dollar and sustained safe-haven demand.

On the Multi Commodity Exchange (MCX), February gold futures climbed nearly 2% to around ₹1.60 lakh per 10 grams, while March silver futures surged over 5% to about ₹3.76 lakh per kg, reflecting strong momentum in overseas markets.

The domestic rally followed sharp moves globally,

with spot gold crossing the $5,200-per-ounce mark for the first time, while silver remained close to record highs after a rapid run-up this year.

Analysts said continued central bank purchases, policy uncertainty in the US and currency weakness have reinforced investor appetite for bullion.

“Spot gold is trading higher due to renewed geopolitical tensions and a softer dollar, which has strengthened safe-haven demand,” said Praveen Singh, Research Analyst at Mirae Asset Sharekhan.

Silver’s gains have been steeper, supported by both investment and industrial demand. “Silver is additionally benefiting from robust industrial demand alongside investment flows,” said Gaurav Garg, Research Analyst at Lemonn Markets Desk.

He added that while prices may see near-term consolidation due to profit-booking, the broader trend remains positive as long as global risk sentiment stays fragile.

Market participants also pointed to policy uncertainty under the US administration as a key driver.

“Policy uncertainty has emerged as the dominant factor for precious metals this year, drawing strong participation from new investors,” said Renisha Chainani, Head of Research at Augmont, noting that fresh inflows continue to add structural support to gold and silver prices.

In the physical market, prices mirrored futures gains.

In Mumbai, 24-carat gold traded above ₹1.65 lakh per 10 grams, while 22-carat gold hovered near ₹1.51 lakh per 10 grams, according to local bullion dealers.

Analysts said domestic bullion prices are likely to remain sensitive to global developments, including currency movements and geopolitical risks, with volatility expected to stay elevated as international markets continue to set new benchmarks.

-With agencies inputs