Gold prices jump over 4 pc to hit record high

January 21, 2026

New Delhi: Gold futures on the MCX surged over Rs 4,100 or 4 per cent on Wednesday to a fresh record high, as investors rushed toward safe-haven assets amid fears of a widening US-EU trade conflict and a weaker dollar.

MCX Gold and Silver Hit Record Levels

MCX gold February futures climbed 4.25 per cent to Rs 1,56,970 per 10 grams. Meanwhile, MCX silver March futures rose 2.71 per cent to Rs 3,32,451 per kg.

International markets also witnessed fresh peaks, with US gold futures jumping to $4,849 per troy ounce on COMEX, while COMEX silver consolidated in the $92.5–$95.7 range.

Trade War Fears Trigger Safe-Haven Buying

The rally followed reports that the United States plans to impose tariffs on eight European countries from February 1 and could raise duties to 25 per cent in June. In response, European nations are reportedly considering anti-coercive measures using trade defence mechanisms to counter economic pressure from foreign governments.

Silver Outlook Remains Strong, Analysts Say

Analysts said the medium-to-long-term outlook for silver remains exceptionally bullish, with prices potentially moving toward $110–$120 in 2026 amid sustained supply constraints and strong industrial demand.

In MCX silver futures, immediate upside targets are seen at Rs 3,30,000–Rs 3,32,000, with potential to extend toward Rs 3,35,000–Rs 3,50,000 in the coming months.

Geopolitical Risks and Weak Rupee Support Prices

“Global equity markets crashed amid the escalation of the trade war, driven by the US President’s ambition to annex Greenland. Panic selling in riskier assets is supporting safe-haven buying for both precious metals,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.

The US 10-year bond yields touched four-month highs due to panic selling in Japanese bonds, further supporting precious metals. Weakness in the rupee also aided gold and silver prices, Jain added.

Structural Demand Adds Long-Term Support

Experts noted that structural demand from solar power, electric vehicles, AI infrastructure, and electronics continues to remain exceptionally strong, reinforcing gold and silver’s appeal as safe-haven and inflation-hedge assets.

Safe-haven flows, central bank accumulation, geopolitical risks, and expectations of accommodative monetary conditions are expected to provide a strong structural tailwind for precious metals going forward.