Why Are Gold and Silver Prices Soaring? Insights into the Market Surge

Gold and silver prices have surged to unprecedented levels, with silver nearing Rs 3.2 lakh per kilogram and gold futures hitting Rs 1.48 lakh per 10 grams. This remarkable rise is driven by investors seeking safe-haven assets amid escalating geopolitical uncertainties. Experts attribute the rally to a combination of global tensions, including issues in Iran and Venezuela, as well as market volatility. As the situation evolves, market participants are keenly observing upcoming global developments that could further impact these precious metals. Read on to learn more about the factors influencing this market surge.

By Narendra Chaudhary Jan 20, 2026, 15:52 IST

Record Highs for Precious Metals Amid Global Tensions

New Delhi: On Tuesday, silver prices continued their remarkable ascent, nearing Rs 3.2 lakh per kilogram, while gold futures reached an unprecedented high of Rs 1.48 lakh per 10 grams. This surge is attributed to a growing interest in safe-haven assets amidst escalating global geopolitical tensions.

On the Multi Commodity Exchange (MCX), silver futures for March delivery jumped by Rs 9,674, marking a 3.2 percent increase to a record Rs 3,19,949 per kilogram.

The white metal had previously crossed the Rs 3 lakh threshold for the first time on Monday, closing at Rs 3,10,275 per kg.

In just two trading sessions, silver prices have skyrocketed by Rs 32,187, reflecting an 11.18 percent increase from Rs 2,87,762 per kg recorded on January 16.

Gold futures also maintained their upward trend, achieving new highs in both domestic and international markets.

For February delivery, gold increased by Rs 2,560, or 1.76 percent, reaching Rs 1,48,199 per 10 grams on the MCX.

Internationally, Comex gold futures surpassed the USD 4,700 per ounce mark for the first time, with the February contract rising by USD 127.15, or 2.76 percent, to USD 4,722.55 per ounce.

Comex silver futures for March delivery also hit a record of USD 94.74 per ounce in overseas trading.

According to Pankaj Singh, smallcase manager and Founder & Principal Researcher of SmartWealth.ai, the rise in gold and silver prices is driven by persistent safe-haven demand amid macroeconomic uncertainties.

He noted, "The yellow metal is on a constructive yet volatile path in early 2026. With uneven global growth and limited policy clarity, investors are viewing gold as a form of portfolio insurance rather than a momentum trade."

Singh attributes the significant price rally to a mix of geopolitical and policy factors.

He explained, "Rising tensions in Iran, renewed US military actions in Venezuela, and new uncertainties related to NATO following President Trump's comments on Greenland have all contributed to a fragile global risk sentiment.

These overlapping issues have heightened the importance of bullion as a form of geopolitical insurance. Gold has become a fundamental asset in a landscape marked by policy volatility and security concerns," he added.

Market participants are now closely monitoring key global events, including the delayed US Supreme Court decision on tariffs from the Trump administration, India's upcoming Union Budget on February 1 for indications on gold import duties, and any developments in the Middle East, all of which could influence currency movements, real yields, and safe-haven investments.