Gold price today: Rates hit fresh record high as trade war fears drive safe-haven demand, sag dollar

Gold price today: Gold rates jumped to a fresh record high on the MCX on Tuesday, January 20, as global trade-war risk continues to drive demand for safe-haven assets while weighing on the US dollar.

MCX gold February futures were 2.60% up at ₹1,49,420 per 10 grams around 5 pm after hitting a record high of ₹1,52,500 per 10 grams. MCX Silver March futures were 4.27% up at ₹3,23,526 per kg at that time after hitting a record high of ₹3,27,998 per kg.

International gold prices also rose to their record highs. U.S. gold futures for February delivery jumped 3% to $4,742.71 per ounce.

Gold is benefiting from strong tailwinds amid heightened geopolitical risks after US President Donald Trump threatened tariffs on eight European countries, prompting the latter to step up their retaliatory rhetoric.

Trump is showing no signs of backing away from his stance on Greenland. If European nations resort to retaliatory measures, it could trigger a major trade war between the US and Europe—two of the world’s largest economic blocs. At present, several of the world’s biggest economies, including China, India and Europe, are already facing US tariffs.

“Gold is surging to fresh record levels as escalating trade tensions between the US and Europe intensify safe-haven demand. The sentiment is very supportive, even though the gold prices have rallied very quickly,” said Aksha Kamboj, Vice President for India Bullion and Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures.

"Gold is expected to remain at higher levels as long as concerns about geopolitical uncertainties continue to be prominent," said Kamboj.

"Silver is driven by the strength of gold as well as strong investment demand due to geopolitical tensions. Silver’s strength despite high levels of volatility suggests strong investor conviction, maintaining the overall outlook firmly positive for the short term," said Kamboj.

The dollar index fell by almost half a per cent, making greenback-backed bullion cheaper for buyers in other currencies.

Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $4,635 and $4,610, while resistance is at $4,700 and $4,740 per troy ounce, and silver has support at $91.40 and $88, while resistance is at $96.60 and $98.80 per troy ounce in today’s session.

On the MCX, gold has support at ₹1,44,800 and ₹1,44,100 and resistance is at ₹1,46,350 and ₹1,47,000, while silver has support at ₹3,03,000 and ₹2,96,600 and resistance is at ₹3,14,000 and ₹3,22,000, said Jain.

Jain suggests buying gold and silver on dips for the targets of ₹1,48,000 and ₹3,22,000, respectively, maintaining stop losses below ₹1,44,000 in gold and below ₹2,98,000 in silver.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.