Summary of this article
Gold prices have touched a new peak, crossing $5,200 an ounce mark
Rise in gold, silver prices driven by safe-haven demand
Gold prices extended gains, touching new highs both in global and domestic markets, as investors continued to bet on the safe-haven asset amid mounting geopolitical tensions. Silver prices also reached a new peak in the domestic market.
In the international market, the gold price breached the USD 5,200 an ounce mark for the first time ever. On Comex, gold futures for February delivery were trading at USD 5,268 per ounce, rising over 3 per cent from the previous session. Meanwhile, silver futures prices on the international exchange rose to USD 113.66 an ounce, up 7.3 per cent from the previous session.
On MCX, gold futures for April delivery were trading at Rs. 1.71 lakh per 10 grams, up over 3 per cent from the previous close. As for silver, the contract for delivery in March was trading at Rs. 3.65 lakh per kg on the MCX, trading 6.5 per cent from the previous close.
So far this year, gold has already surged 18 per cent, extending last year’s rally, while silver prices have jumped over 57 per cent.
The rise in prices for both metals has been led by a combination of factors, including geopolitical uncertainty, a fall in the dollar, as well as a step up in gold purchases by global central banks.
US President Donald Trump’s new threats to impose tariffs on South Korean imports had led to a sharp gap-up opening for gold at the beginning of the week. Along with this, the risk of a partial shutdown of the US government ahead of the January 30 funding deadline also kept investors on edge.
Market participants said that while prices of precious metals are seen in a rising trend, volatility is expected as investors will look to book profits, providing some correction. The movement in rupee against the dollar will also determine prices in the domestic markets, they said.
The US dollar has been weakening against its peers, with the dollar index falling to 96.08 amid a global de-dollarisation trend. However, the rupee has performed worse, being the worst-performing Asian currency in 2025, and is hovering near the 92-to-a-dollar mark.
Market participants are also watching out for the decision of the US Federal Reserve on interest rates due January 28. Most expect the Federal Open Market Committee to keep rates unchanged. However, market participants will watch out for the number of dissenting votes to gauge the future rate trajectory.
