Gold and silver prices in India tore through record highs Wednesday, tracking a ferocious global rally as escalating trade tensions between the US and Europe sent investors fleeing to safe-haven assets.
On the Multi Commodity Exchange (MCX), gold futures for February delivery surged past the psychological ₹1.5 lakh barrier, rising as much 4.90% to ₹1,58,339/10 gm. Silver continued its blistering outperformances, with March futures surging to an intraday high of ₹3,34,027/kg—up 3.19%.
The catalyst for the latest leg of the bullion super-cycle appears to be renewed geopolitical friction. Market sentiment turned risk-averse following after US President Donald Trump threatened tariffs on European allies if they don’t United States’ plan to annex Greenland from Denmark. The uncertainty was compounded after the US Supreme Court delayed a ruling on the legality of existing trade levies, effectively keeping the tariff threat alive.
“It’s the loss of trust in the US… The move in gold reflects fears about global geopolitical (tensions),” Kyle Rodda, a senior market analyst at Capital.com, told Reuters.
Gold and silver prices in India
In the domestic market, the rally has been nothing short of explosive. Silver prices have jumped nearly ₹17,700 kg in just two sessions, driven by a “perfect storm” of industrial demand and geopolitical convulsions.
The divergence between the surging precious metals and the broader Indian equities market was stark on Wednesday. While the S&P BSE Sensex struggled for direction, bullion ETFs saw heavy inflows.
Global cues provided a firm tailwind. Spot gold rose to a record above $4,800 an ounce, while silver held firm near $94.30 an ounce. The US Dollar Index (DXY) weakened, making dollar-priced bullion more attractive for overseas buyers, further fueling the rally in emerging markets like India.
Surging gold during wedding season in India
For Indian consumers, however, the eye-watering prices may dampen physical demand as the wedding season approaches. Dealers in Mumbai’s Zaveri Bazaar reported a sharp drop in footfall, with buyers recycling old jewellery rather than making fresh purchases at these historic levels.
“The psychological barrier of ₹1.5 lakh/10 gm is significant,” a Mumbai-based bullion dealer said. “But for the investment class, the fear of missing out—or FOMO—is kicking in hard.”