Gold and silver prices advanced to all-time high on Wednesday (January 21), driven by heightened geopolitical tensions, trade policy concerns and currency movements that reinforced demand for safe-haven assets.
In global markets, spot gold rose about 0.8% to around $4,806 an ounce, crossing the $4,800 mark for the first time, while silver gained roughly 0.4% to $95.01 an ounce, hovering near its all-time high of $95.87.
Analysts attributed the rally to persistent risk aversion amid renewed trade threats and geopolitical uncertainty.
In India, bullion prices mirrored the global surge. Gold of 99.9% purity traded at around ₹1.53 lakh per 10 grams (inclusive of taxes) in the national capital.
Silver prices jumped nearly 7% in a single session to about ₹3.23 lakh per kilogram, after crossing the ₹3-lakh mark earlier in the week.
Market participants pointed to multiple global triggers.
Colin Shah, Managing Director of Kama Jewelry, said renewed uncertainty around US trade policy—including proposed tariffs on several European countries—and broader geopolitical tensions have pushed investors towards gold and silver as safe-haven assets.
He noted that while elevated prices may temper discretionary jewellery demand in some price-sensitive segments, gold remains well supported over the medium to long term due to its dual role as a store of value and an adornment.
NS Ramaswamy, Head of Commodity & CRM at Ventura, highlighted that gold is trading near lifetime highs across exchanges, supported by mounting geopolitical risks ranging from potential trade retaliation between the US and Europe to unresolved conflicts in Eastern Europe and West Asia. He added that a weakening Indian rupee has amplified domestic returns, as higher global prices and currency depreciation work in tandem.
Silver’s outperformance has also drawn attention.
Aamir Makda, Commodity & Currency Analyst at Choice Broking, said silver has delivered strong returns so far in 2026, supported by structural supply deficits and rising industrial demand from sectors such as solar power, electric vehicles, and data centres.
While he sees scope for further upside, Makda cautioned that some technical indicators suggest waning momentum, prompting selective profit-taking by traders at elevated levels.
From an investment and taxation perspective, Prashant Thacker, Managing Partner at Thacker & Associates, said rising volatility and global uncertainty have increased interest in physical bullion, ETFs, gold mutual funds and Sovereign Gold Bonds (SGBs). He noted that recent tax changes—such as the withdrawal of indexation benefits for certain gold investments—have altered post-tax returns, while SGBs continue to retain appeal due to tax-free maturity.
Shoyal Kumar, Co-Founder and CEO of Tredo, said retail investors are currently adopting a balanced approach. “At these price levels, many investors are holding positions for stability, while some—particularly in silver—are booking partial profits after the sharp rally,” he said.
Kumar added that demand among digital retail investors is relatively stronger for silver, which is increasingly viewed as an affordable investment with both industrial and safe-haven appeal. He also noted a growing preference for staggered, small-ticket purchases to manage volatility and average costs.
-With agencies inputs