On Wednesday, January 21, the price of gold and silver resumed their robust upward trend as investors sought safety in safe-haven markets with the global uncertainty increasing. The bullion prices increased dramatically both on the domestic and the international market but was supported by the weakening of the US dollar and the increasing geopolitical tension due to aggressive policies of US President Donald Trump towards Greenland and Europe.
In India, gold prices hit a record price and surpassed Rs 1.55 lakh per 10 grams in the futures market. At the Multi Commodity Exchange (MCX), gold contracts of delivering in the month of February 5, 2026 shot up 3.53 percent to trade at Rs 1,55,886 per 10 grams. Silver prices were also high, increasing 0.69 percent to March 5, 2026 contracts whose price was at Rs 3,25,903 per kg.
The rally also was evident in the spot market. In Mumbai, 24-carat gold reached a new high of Rs 1,54,800 per 10 grams and 22-carat gold was retailing at Rs 1,41,900 per 10 grams. These prices are not inclusive of making charges or GST. Silver also reached a new life time high in the physical market, where it was trading at Rs 3,25,100/kg.
Gold rates were relatively stable in the major Indian cities. In Delhi and Jaipur, the gold price of 22 carat was at 1,42,050 per 10 grams and the price of 24 carat was 1,54,950. The price of 22-carat gold in Mumbai, Pune, Chennai, Bengaluru, Hyderabad and Kolkata was at 1,41,900 per 10 grams and 24-carat gold was 1,54,800 per 10 grams. The same was witnessed in Ahmedabad, 22-carat gold was at Rs 1,41,950 per 10 grams and 24-carat gold was at Rs 1,54,850 per 10 grams.
The steep increase in domestic prices was preceded by a strong bullion market crash in the world market. The prices of gold were soaring in the international market to unprecedented heights of above 4,800 per ounce.
In the early Asian trade, spot gold gained 1.2 percent to $4,821.26 a pound and had reached an all time high of $4,843.67 earlier in the day. Futures delivery of gold in the US also rose close to 1 percent to 4,813.50 per ounce.
The prices of silver abroad, however, were rather subject to profit-taking. Spot silver fell about 1 percent to $93.59 per ounce, having reached an all-time high of 95.87 on Tuesday. Market analysts are of the opinion that the upward trend has been fueled by the increasing fears of worldwide political stability.
Analysts have pointed out that the president Trump is losing investor confidence in the US dollar because of his recent actions. His new initiative to dominate Greenland, as well as his threats to tariffs of the European countries, has caused panic of a new trade war and worsening relations in NATO.
Recently, Trump repeated that there was no turning back in his ambition to conquer the territory of Greenland and did not exclude the possibility of using force. Even though he later indicated that he would make attempts to ensure that NATO allies were contented, the damages to the market confidence were already inflicted.
French President Emmanuel Macron was highly outraged by this and expressed that Europe would not be subjected to pressure and intimidation. According to analysts, investors are selling the dollar and US treasuries and investing their money in gold, which is now regarded as a safer tool of exchange.
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US dollar has depreciated against the leading currencies such as the euro and Swiss franc and Asian stock markets have been kept at bay. As the uncertainty persists, analysts believe that the price of gold and silver will continue to be volatile though it will be backed in the short run.
