At record high! Gold prices jump Rs 2,000, silver rallies Rs 10,000: What's fuelling the surge?

Gold and silver prices opened at fresh record highs on Monday, driven by geopolitical tensions. On the Multi Commodity Exchange (MCX), silver March futures surged to a new lifetime high of Rs 2,63,996 per kg, registering a sharp gain of over Rs 10,314 or 4%.

Meanwhile, gold February futures touched a new peak of Rs 1,41,250 per 10 grams, with the opening price at Rs 1,39,600 and intraday gains of nearly Rs 2,000 or 1.4%.

The rally in precious metals comes amid heightened safe-haven demand triggered by rising global volatility, economic uncertainty and elevated geopolitical risk, ranging from unrest in Iran to escalating global trade tensions.


Gold prices soared past the $4,600 per ounce mark internationally on Monday for the first time ever, while silver also hit a record high. The rally was driven by rising geopolitical and economic uncertainties, along with increasing expectations of interest rate cuts in the US.

Spot gold rose 1.3% to $4,469.49 per ounce as of 0203 GMT, after touching an all-time high of $4,600.33 earlier in the day. US gold futures for February delivery were up 2% at $4,591.10.

Adding to the volatility, US Federal Reserve Chair Jerome Powell revealed on Sunday that the Trump administration had threatened him with criminal indictment over his Congressional testimony, an action Powell described as a "pretext" to pressure the Fed into lowering interest rates.

Back home, gold and silver also ended higher on Friday, tracking global trends. The gold February futures contract closed at Rs 1,38,819 per 10 grams, up 0.78%, while silver March futures settled at Rs 2,52,725 per kilogram, gaining 3.86%.

Tensions in Iran further added to market anxiety, with a rights group reporting over 500 deaths amid civil unrest. Iran has also threatened to strike US military bases following renewed warnings from President Trump. The global mood remains tense, with the US taking assertive stances, including ousting Venezuela’s President, reportedly expressing interest in acquiring Greenland, and backing protests in Iran.

Gold and silver have rallied recently amid extreme volatility in global commodity markets, fuelled by escalating geopolitical tensions and an uncertain economic outlook. A bill passed by the US administration to impose 500% tariffs on BRICS nations for importing Russian oil has further unsettled markets.

“The rising aggression from the US President is fuelling uncertainty in financial markets and prompting investors to flock to safe-haven assets like gold and silver,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.

On Monday, the US Dollar Index (DXY) was hovering around 98.96, down 0.17 points or 0.17%.

“We're seeing very high volatility in precious metals,” Jain noted. “But silver is likely to hold its support level near $65 per troy ounce, and gold may hold around $4,240 per ounce on a closing basis.”

How to trade gold and silver now

Jain shared key levels for traders to watch on the MCX:

Gold: Support at Rs 1,37,850 to Rs 1,36,880 and resistance at Rs 1,39,670 to Rs 1,40,520

Silver: Support at Rs 2,45,500 to Rs 2,38,250 and resistance at Rs 2,58,150 to Rs 2,63,550

He added that his firm’s buy recommendation on gold remains active, with targets set at Rs 1,40,000, Rs 1,41,400 and Rs 1,42,500. He recommends revising the stop loss to Rs 1,37,700 for existing long positions.

For silver, he suggests buying on dips in the Rs 2,45,500 to Rs 2,40,000 range, with a stop loss below Rs 2,38,000, targeting levels of Rs 2,55,500 and Rs 2,58,000.

Gold rates in physical markets

Gold price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,04,912 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,12,960 per 8 grams.

Gold price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,04,184 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,12,192 per 8 grams.

Gold price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,03,800 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,11,816 per 8 grams.

Gold price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,03,536 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,11,584 per 8 grams.

Also read: Motilal sees silver sparkle through 2026, pegs Rs 3.20 lakh target. Is the big run just beginning?

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)