NEW DELHI, January 21, 2026, 03:25 (IST)
- On Tuesday, MCX gold futures surged past Rs 1.5 lakh per 10 grams for the first time ever.
- Silver soared to a new high, crossing Rs 3.2 lakh per kg in India and topping $95 an ounce in international markets.
- Traders attributed the move to a flight into safe-haven assets amid renewed U.S.-Europe trade tensions sparked by Greenland.
Gold prices in India surged further into uncharted territory on Tuesday, with futures on the Multi Commodity Exchange (MCX) hitting Rs 1.5 lakh per 10 grams for the very first time. Investors rushed into safe-haven bets following new tariff threats between the U.S. and Europe.
The shift is hitting retail quotes in major cities quickly, driving up jewellery prices and funneling more short-term funds into the futures market. Dealers noted this has also stretched the gap between screen trading prices and what buyers actually pay in physical markets.
Gold took center stage worldwide. Spot prices surged past $4,700 an ounce, with U.S. futures closing near $4,766. Silver hit $95.87 briefly before pulling back. Fawad Razaqzada, market analyst at City Index and FOREX.com, noted, “Gold has surged deeper into uncharted territory as investors hedge against rising political risk.” 1
On MCX, the February 5 gold contract jumped up to 4%, reaching Rs 1,51,470 per 10 grams, building on gains from the prior session, ETMarkets.com reported. “Global uncertainty and geopolitical tensions are pushing investors towards gold as a safe-haven,” said Colin Shah of Kama Jewelry. Meanwhile, Manoj Kumar Jain from Prithvi Finmart highlighted high volatility and recommended buying on dips, but with tight stops. 2
Physical prices also edged up. In New Delhi’s spot market, 24-carat gold hit Rs 1,52,500 per 10 grams, rising from Rs 1,48,100 in the previous session. Silver jumped to around Rs 3.23 lakh per kg, according to Deccan Chronicle. “With prices surging recently, the market is bracing for sharp corrections soon,” said Surender Jain of the Delhi Bullion Association. 3
Retail gold prices moved in near lockstep, but spreads between cities remained noticeable. The Times of India reported 24-carat gold at Rs 14,852 per gram in Delhi and slightly lower at Rs 14,837 in Mumbai, while Chennai topped the list at Rs 15,164 per gram. Meanwhile, 22-carat gold hovered between Rs 13,600 and Rs 13,900 per gram across these cities. 4
The latest surge in metals prices was sparked by politics rather than any mining supply issues. President Donald Trump threatened fresh tariffs on European nations over a spat involving Greenland, and separately proposed a 200% tariff on French wines and champagne, Reuters reported. Laurence Whyatt, Barclays’ head of European beverages research, said, “Getting more threats is going to make the industry harder to invest in.” 5
Silver followed gold upward, driven by the same rush toward safe assets. MCX silver topped Rs 3.2 lakh per kg, with international prices hovering close to all-time highs. Platinum gained ground, while palladium saw volatile moves.
That rally carries risk. Traders and bullion dealers expect sharp pullbacks if tariff talk fades, the dollar holds steady, or profit-taking kicks in after the jump. Some in the physical market are already noticing demand weakening at these prices.
Investors are now eyeing U.S. economic data and central bank signals for the next move. The focus is on the U.S. personal consumption expenditures price index, the Fed’s favored inflation measure, for hints on future interest rates. Meanwhile, reports from the Davos meetings continue to stir up volatility.
