Gold and silver prices kicked off the week on a strong note, with both precious metals scaling fresh historic peaks as demand for safe-haven assets remained firm amid rising geopolitical and trade tensions, alongside reports that US prosecutors are investigating Fed Chair Jerome Powell, further heightening market uncertainty.
The February gold futures on MCX opened higher at ₹1,39,600 per 10 grams, up from the previous close of ₹1,38,819, and built on the momentum to hit a fresh record high of ₹1,42,340 ( ₹3,521 higher), crossing ₹1.41 lakh for the first time. The rally has also contributed to a 4.76% gain in January so far.
Spot gold prices similarly reached a fresh peak of $4,611 per ounce, 2.2% higher than the previous close of $4,509.
Silver prices top ₹2.68 lakh
After rallying 7% last week, the March delivery silver futures on MCX also started the week with a sharp jump of ₹15,532 per kilogram, hitting a fresh record high of ₹2,68,257. This contributed to a 14% surge in the first nine trading sessions of 2026.
In the international market, spot silver prices strengthened by as much as 7% to a fresh peak of $85.49 per ounce, contributing to a 19.15% surge so far in January, after rising 148% in 2025.
In recent sessions, both silver and gold saw some profit booking but rebounded sharply in subsequent trading, continuing to build on the massive rally of 2025.
Domestic brokerage firm Motilal Oswal, in its latest report, expects the rally in silver and gold prices to continue in 2026, setting a target of ₹3,20,000 per kilogram for MCX silver, while placing the risk-negation level at ₹1,40,000. For gold, the brokerage expects the MCX prices to reach ₹1,60,000.
Safe-haven demand lifts precious metals amid global uncertainty
The safe-haven appeal of precious metals appears to have been reinforced by geopolitical tensions around China–Japan trade relations, the US capture of Venezuela’s leader, fresh tariff-related tensions, and a criminal probe into Federal Reserve Chair Jerome Powell.
In the Middle East, tensions in Iran have deepened, with citizens filling the streets of the national capital, Tehran, as anti-government protests intensified on Saturday night amid an internet shutdown in the country and a crackdown by the Ayatollah Ali Khamenei-led government, Mint reported earlier.
Meanwhile, the US dollar fell the most in three weeks on Monday after US prosecutors opened a criminal investigation into Federal Reserve Chair Jerome Powell, adding to tensions with the Trump administration, Reuters reported.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was last down 0.5% at 98.67, snapping a five-day winning streak and making dollar-priced commodities cheaper for holders of other currencies.
The recent US jobs data delivered mixed signals on the health of the world’s largest economy, providing little clarity on the future path of US Federal Reserve rate cuts.
Traders will closely watch the upcoming release of the US consumer price index for December, one of the final key economic data points ahead of the Federal Reserve’s next monetary policy meeting at the end of January.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
