Silver, gold hit record highs on MCX amid safe-haven buying

Silver and gold prices scaled fresh peaks in futures trade on Tuesday (January 27), buoyed by strong buying interest as investors sought safety amid lingering geopolitical and economic unease. While silver surged to an all-time high of Rs 3.59 lakh per kilogram, gold climbed to a lifetime high of Rs 1.59 lakh per 10 grams.

On the Multi Commodity Exchange (MCX), silver contracts for March delivery jumped Rs 25,101, or 7.5 per cent, to touch a record Rs 3,59,800 per kilogram during the session.

The sharp rise comes following a strong advance last week, when silver gained Rs 46,937, or 16.3 per cent, crossing the Rs 3 lakh per kilogram level for the first time. Gold futures also extended their record-breaking run, with the February contract climbing by Rs 3,783, or 2.42 per cent, to Rs 1,59,820 per 10 grams. The yellow metal had jumped Rs 13,520 or 9.5 per cent, over the past week.

Geopolitical risks boost safe-haven buying

Analysts attributed the surge in bullion prices to rising safe-haven demand as traders sought shelter amid global market turbulence triggered by geopolitical strains and policy jitters.

Silver and gold prices surged sharply to hit record highs on Tuesday, as investors accelerated their shift toward safe-haven assets.

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Heightened geopolitical risks and renewed trade tensions, particularly from US President Donald Trump's threat to raise tariffs on South Korean imports, weighed on global market sentiment, Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said.

Kalantri added that growing concerns over fiscal discipline and policy credibility eroded confidence in sovereign bonds and currencies, prompting a shift into assets like gold and silver.

Budget 2026 in focus for domestic bullion sentiment

According to commodities market experts, traders will also shift their focus to the Union Budget 2026, to be presented by Finance Minister Nirmala Sitharaman on February 1, which could influence domestic bullion sentiment through changes in import duties and fiscal measures.

Domestic commodities had remained shut on Monday on account of the 77th Republic Day.

Overseas markets see profit booking at elevated levels

In the international market, Comex silver futures for March delivery dropped by $7.2, or 6.27 per cent, to $108.26 per ounce as investors booked profits at elevated levels.

In the previous session, the white metal had touched a record of $117.26 per ounce. The metal had breached the key $100 per ounce per level on Friday for the first time.

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Similarly, Comex gold futures for February delivery slipped $26.25, or 0.51 per cent, to $5,096.05 per ounce on Tuesday, after touching a new record of $5,107.9 per ounce in the previous session.

On Friday, gold had crossed the psychological $5,000 per ounce mark in overseas trade for the first time.

Fed policy uncertainty supports precious metals

Investors are weighing the upcoming US Federal Reserve policy decision, though concerns about the Fed's independence and speculation that Trump may announce a new Fed chair this week have overshadowed the meeting, Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Trivedi further noted that silver and other precious metals have benefited from the "debasement trade," with investors shifting from bonds and currencies into real assets amid growing unease over heavy fiscal spending in major economies.

(With agency inputs)