Gold and Silver Futures Scale New Lifetime Peaks on MCX
Gold and silver futures soared to unprecedented lifetime highs on Tuesday, propelled by robust safe-haven demand as geopolitical uncertainties continued to rattle global markets. On the Multi-Commodity Exchange (MCX), the rally was particularly pronounced, with both precious metals posting significant gains that mirrored international trends.
Record-Breaking Performance on Domestic Exchange
On the MCX, gold futures for February 5 delivery witnessed a sharp upswing, climbing by Rs 2,522 or 1.62% to trade at Rs 1,58,559 per 10 grams. Earlier in the trading session, the yellow metal had briefly touched a historic peak of Rs 1,59,820, underscoring the intense buying interest among investors.
Silver futures for March 5 delivery displayed even more dramatic momentum, jumping by Rs 19,831 or 5.93% to reach Rs 3,54,530 per kilogram. During the day, silver hit a fresh all-time high of Rs 3,54,780, reflecting its strong appeal as an alternative asset during times of market turbulence.
Global Markets Fuel Domestic Rally
The surge in domestic prices was closely aligned with movements in international markets, where gold broke above the critical $5,100-per-ounce threshold. As of 0121 GMT, spot gold was trading at $5,068.05 per ounce, marking a 1.1% increase from Monday's record high of $5,110.50. US gold futures for February delivery also advanced, gaining 0.4% to settle at $5,063.00 per ounce.
Silver exhibited remarkable strength on the global stage, with spot prices climbing 6.3% to $110.39 per ounce after touching a record $117.69. This performance represents an impressive 55% gain so far in 2026, highlighting the metal's bullish trajectory amid ongoing economic and political developments.
Geopolitical Factors and Market Volatility
Several geopolitical events have contributed to the heightened volatility in precious metals markets. Earlier on Tuesday, US President Donald Trump announced plans to impose a 25% tariff on South Korean automobiles, lumber, and pharmaceuticals, citing a stalled trade agreement. This move followed recent tensions with Canada after Prime Minister Mark Carney's visit to China, which reportedly strained relations between Ottawa and Washington.
Currency dynamics also played a crucial role in supporting precious metals prices. The US Dollar Index declined to 96.92, a four-month low, dropping by 0.12 points amid a rebound in the Japanese yen. This depreciation made gold more affordable for foreign buyers, further bolstering demand.
Expert Insights on Market Trends
Manoj Kumar Jain of Prithvifinmart Commodity Research provided valuable commentary on the factors driving the rally. He emphasized that precious metals have been underpinned by strong safe-haven demand, fueled by global uncertainty, positive US consumer confidence data, and persistent weakness in the US dollar.
Addressing the price volatility, Jain noted, "We are experiencing very high price volatility in both precious metals. Silver prices could hold support near $98 per troy ounce, and gold may remain firm above $4,840 per troy ounce on a closing basis this week."
The combination of geopolitical tensions, currency fluctuations, and investor sentiment has created a perfect storm for precious metals, driving them to new heights. As markets continue to navigate uncertainty, gold and silver are likely to remain in focus as key assets for portfolio diversification and risk mitigation.
