They say all that glitters is not gold, but these days, gold itself is doing plenty of glittering. Gold and silver surged to fresh record highs on Tuesday, with spot gold crossing $4,725 per ounce and silver breaching $95 per ounce, driven by escalating geopolitical tensions between the United States and Europe. On the domestic front, MCX gold rose above ₹150,000 per 10 grams while MCX silver crossed ₹326,000 per kg, marking historic peaks ahead of the February 1 Union Budget.
The rally has been fueled by President Donald Trump’s renewed push for the U.S. to acquire Greenland, coupled with threats of tariffs on eight European countries, including France, Germany, and the UK. “A 10 per cent duty is scheduled to take effect from February 1, with tariffs expected to rise to 25 per cent by June,” said Kaynat Chainwala, AVP – Commodity Research at Kotak Securities. European officials are now weighing retaliatory measures against over $100 billion in U.S. goods, raising fears of a transatlantic trade war.
Geopolitics drive metals
“Gold and silver are no longer just commodities, they are geopolitics in metal form,” said Amit Jain, Co-Founder of Ashika Global Family Office Services. “When major powers fight over resources like Greenland, markets instinctively price in risk, and precious metals become the default refuge.”
Rupee depreciation boost
The Indian rupee’s sharp depreciation has amplified returns for domestic investors. “USDINR January futures on the NSE are currently trading above 91, marking a depreciation of over one rupee so far this year,” noted NS Ramaswamy, Head of Commodity & CRM at Ventura. “Domestic participants are benefiting from two simultaneous drivers: rising global gold prices and rupee depreciation together amplifying returns.”
Silver supply crunch
Silver’s rally has been particularly dramatic, supported by what Chainwala describes as “a structural supply-demand imbalance, driven by constrained mine output and rising industrial consumption.”
Ponmudi R, CEO of Enrich Money, said “a sustained breakout above the $4,700 mark is likely to trigger the next impulsive leg higher toward $4,800–$5,000 in the very near term.”
Published on January 20, 2026