Key Points:
- Silver crosses ₹4 lakh on MCX, hits record high of ₹4,02,099
- Gold jumps nearly 7% on MCX to ₹1,77,420
- Global silver nears $120 per ounce, up over 60% this year
- US-Iran tensions and Federal Reserve stance fuel rally
- Dollar weakness adds momentum to precious metals
Silver prices witnessed a historic surge on January 29, breaching the ₹4 lakh mark for the first time in India. On the Multi Commodity Exchange (MCX), silver soared 4.34% to a fresh all-time high of ₹4,02,099 per kilogram, reflecting heightened demand for safe-haven assets amid global uncertainty.
Gold prices also registered a strong rally, climbing 6.93% to ₹1,77,420 on MCX. The sharp rise in both metals underscores growing investor preference for precious metals as geopolitical risks escalate and macroeconomic signals remain mixed.
Global Markets Mirror Sharp Upside
In the international market, silver prices surged close to the $120 per ounce level. Spot silver rose 1.1% to $117.87 per ounce after touching a record high of $119.34 earlier in the session. Silver has gained more than 60% so far this year, supported by robust investment demand as a relatively cheaper alternative to gold, persistent supply constraints, and momentum-driven trading.
Gold also posted a remarkable jump globally, rising more than $300 to $5,588.71 per ounce. The yellow metal has advanced over 27% year-to-date. During intraday trade, gold touched a record high of $5,591.61 and was trading 2.7% higher at $5,542.29 per ounce by 0149 GMT.
Among other precious metals, spot platinum gained 1% to $2,723.40 per ounce, while palladium declined 1.6% to $2,041.20 per ounce.
Geopolitical Tensions and Fed Signals Drive Demand
The latest rally has been fueled by rising geopolitical tensions after US President Donald Trump warned of severe military consequences if Iran refuses to resume negotiations on its nuclear program. The statement comes amid reports of increased US military deployments in the Middle East, heightening global risk sentiment.
At the same time, monetary policy cues from the US Federal Reserve added to market volatility. The Fed kept interest rates unchanged, in line with expectations, but Chair Jerome Powell indicated that inflation remained above the 2% target in December. A softer US dollar following the policy decision further supported precious metal prices, making them more attractive to global investors.
Outlook
Market participants remain cautious but bullish on precious metals in the near term, as geopolitical risks, expectations of global stimulus, and central bank signals continue to favor safe-haven assets. Analysts suggest volatility may persist, with silver and gold likely to remain sensitive to developments in global politics, inflation data, and currency movements.
