Gold and silver prices witnessed strong buying activity during Monday's trading session on January 19. Both precious metals climbed to unprecedented levels as investors sought safety amid growing fears of escalating global trade tensions.
Gold Futures Soar Past ₹1.45 Lakh Mark
February gold futures on the Multi Commodity Exchange (MCX) opened higher at ₹1,43,321 per 10 grams. This marked an increase from the previous closing price of ₹1,42,517. The contracts continued their upward trajectory, eventually hitting a new record high of ₹1,45,590.
This represents a significant gain of ₹2,983. For the first time ever, gold futures crossed the ₹1.45 lakh threshold. The rally also ended a two-day losing streak for the yellow metal.
Silver Continues Its Spectacular Rally
Silver prices resumed their winning streak with equal vigor. March silver contracts on MCX jumped by ₹16,438 per kilogram. This surge propelled prices to another historic peak of ₹3,04,200.
Today's impressive performance adds to a remarkable seven-session run. In just over a week, silver has gained a cumulative ₹60,876 per kilogram. The rally has contributed to a 27% surge in prices so far this January.
Building on a Massive 2025 Rally
This early 2026 strength follows an extraordinary year for both metals. In 2025, prices rallied by a staggering 170%. Multiple factors drove that historic increase.
- Geopolitical escalations around the world
- Persistent global trade tensions
- Monetary easing by central banks
- Strong inflows into exchange-traded funds (ETFs)
- Noticeable supply constraints
- Rising safe-haven demand from investors
- A sharp decline in exchange inventories
Silver's ascent has been particularly rapid. It took less than nine months for the metal to rise from ₹1 lakh to ₹2 lakh per kilogram. The next ₹1 lakh increase was achieved in under seven weeks, highlighting the intense momentum.
Trump's Tariff Threats Revive Market Fears
The latest price surge finds its catalyst in fresh concerns from the United States. Former President Donald Trump's recent actions have added new headwinds to an already complex global landscape.
Trump's capture of Venezuela's leader, renewed threats over Greenland tariffs, and violent protests in Iran have all contributed to market anxiety. While he softened his tone regarding potential attacks on Iran, his tariff warnings over the weekend sent shockwaves through financial markets.
Trump stated he would impose a 10% tariff on goods from eight European countries starting February 1. This tariff would rise to 25% in June unless a deal is reached for the "purchase of Greenland."
European Nations Face Direct Impact
The proposed tariffs would specifically target Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. This announcement revived tariff-related concerns that had reached new heights in 2025, a year otherwise marked by optimism about artificial intelligence.
European leaders responded swiftly with strong rebukes. They are now prepared to halt approval of the trade agreement struck last year. Reports suggest French President Emmanuel Macron may request activation of the EU's anti-coercion instrument. This mechanism represents the bloc's most powerful trade retaliation tool.
A Return to the Tariff Playbook
Since the beginning of the year, Trump has reopened his tariff playbook. Earlier this month, he warned of 25% tariffs on countries conducting business with Iran. He also proposed a massive 500% tariff on countries importing crude oil from Russia.
These developments have created a perfect storm for precious metals. Investors are flocking to gold and silver as traditional safe havens during times of economic and geopolitical uncertainty. The metals' ability to preserve value when other assets falter makes them particularly attractive in the current climate.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
