Precious metals started the new year on a positive note, with both gold and silver recording gains in domestic and international markets on Thursday, January 2, 2026. The uptick was supported by a combination of global economic cues and currency movements.
Market Performance: MCX and Comex Show Strength
On the Multi Commodity Exchange (MCX), the February 2026 gold futures contract opened higher and traded with strength. The contract was seen gaining, reflecting the positive sentiment in the bullion market. Similarly, silver futures also followed the upward trend, indicating broad-based buying interest in precious metals.
Internationally, on the Comex division of the New York Mercantile Exchange, gold futures traded in positive territory. The most-active February 2026 gold contract was quoted higher, providing a firm direction to the Asian and Indian markets. The rise in international prices directly influences the landed cost of gold in India, a key factor for domestic pricing.
City-wise Gold Rates in India
The price of physical gold varied across major Indian cities on January 2, 2026, depending on local taxes, making charges, and demand. The rates are primarily quoted for 24-carat and 22-carat purity.
In the national capital, Delhi, 24-carat gold was traded at a higher price per 10 grams. The city's bullion market, a key hub in North India, mirrored the MCX gains.
In Mumbai, another major trading centre, the price for 24-carat gold also moved up. The rates in Mumbai often set a benchmark for other parts of the country due to the city's significant role in gold imports and distribution.
Down south, in Chennai, gold prices were quoted at a premium compared to some other cities, a common trend due to regional demand dynamics and local taxes. The 22-carat gold, widely used for jewellery, also saw a proportional increase in its rate across these cities.
Factors Driving the Precious Metals Rally
Several factors contributed to the positive movement in gold and silver prices. Analysts pointed to a slightly weaker US dollar, which makes dollar-denominated commodities like gold cheaper for holders of other currencies. Additionally, ongoing geopolitical tensions and concerns about global economic growth continued to support the safe-haven appeal of gold.
Domestically, the Indian rupee's exchange rate against the US dollar played a crucial role. Any depreciation in the rupee makes importing gold more expensive, thereby supporting higher domestic prices.
Market participants are now closely watching for key economic data releases from the United States, including non-farm payroll numbers, which could influence the Federal Reserve's monetary policy stance. Changes in interest rate expectations are a primary driver for gold, as the metal offers no yield.
The day's gains mark a constructive start for bullion in 2026, with investors balancing between inflation hedges, safe-haven demand, and the opportunity cost of holding a non-interest-bearing asset. Retail buyers and jewellers across India are adjusting their strategies based on these daily price fluctuations.
