Gold and silver prices opened at fresh record highs on Monday, driven by heightened geopolitical tensions and robust safe-haven demand. The precious metals rally reflects growing investor anxiety amid global volatility and economic uncertainty.

Record-Breaking Performance on MCX

The Multi Commodity Exchange (MCX) witnessed unprecedented levels for both precious metals during Monday's trading session.

The silver March futures contract registered a sharp gain of over ₹10,314, representing a 4% surge to reach the new lifetime high. Gold February futures demonstrated strong momentum with intraday gains of nearly ₹2,000 or 1.4%.

International Market Dynamics

Global precious metals markets mirrored the domestic surge, with gold prices soaring past the $4,600 per ounce mark internationally for the first time. Spot gold rose 1.3% to $4,469.49 per ounce as of 0203 GMT, after touching an all-time high of $4,600.33 earlier in the day. US gold futures for February delivery were up 2% at $4,591.10.

The rally was driven by rising geopolitical and economic uncertainties, along with increasing expectations of interest rate cuts in the US. Adding to market volatility, US Federal Reserve Chair Jerome Powell revealed on Sunday that the Trump administration had threatened him with criminal indictment over his Congressional testimony.

Geopolitical Factors Driving Safe-Haven Demand

Several geopolitical developments have contributed to the precious metals surge:

• Tensions in Iran with over 500 deaths reported amid civil unrest
• Iran's threats to strike US military bases following renewed warnings from President Trump
• US assertive stances including ousting Venezuela's President and expressing interest in acquiring Greenland
• A bill passed by the US administration to impose 500% tariffs on BRICS nations for importing Russian oil

"The rising aggression from the US President is fuelling uncertainty in financial markets and prompting investors to flock to safe-haven assets like gold and silver," said Manoj Kumar Jain of Prithvifinmart Commodity Research.

Trading Levels and Market Outlook

Market experts have identified key technical levels for traders on the MCX:

Jain noted that his firm's buy recommendation on gold remains active, with targets set at ₹1,40,000, ₹1,41,400 and ₹1,42,500. He recommends revising the stop loss to ₹1,37,700 for existing long positions. For silver, he suggests buying on dips in the ₹2,45,500 to ₹2,40,000 range, with a stop loss below ₹2,38,000, targeting levels of ₹2,55,500 and ₹2,58,000.

Physical Gold Prices Across Major Cities

Physical gold markets across major Indian cities reflected the overall upward trend:

The US Dollar Index (DXY) was hovering around 98.96, down 0.17 points or 0.17% on Monday. "We're seeing very high volatility in precious metals," Jain noted, adding that "silver is likely to hold its support level near $65 per troy ounce, and gold may hold around $4,240 per ounce on a closing basis."

Silver prices experienced a dramatic surge on Monday, January 12, reaching unprecedented levels on the Multi Commodity Exchange (MCX). The white metal jumped 3.87% during early morning trading, establishing a fresh record high amid favorable international market conditions and heightened geopolitical tensions.

Record-Breaking Performance on MCX

The precious metal's performance on Monday showcased significant momentum in the domestic commodity markets:

International Market Drivers

The rally in silver prices was primarily attributed to gains in international markets, with several key factors contributing to the upward momentum. The US dollar experienced weakness following threats from the US Justice Department to criminally indict the Federal Reserve, creating favorable conditions for precious metals trading.

Geopolitical Tensions Support Precious Metal Demand

Ongoing geopolitical strains have provided additional support to silver prices, with escalating protests in Iran contributing to market uncertainty. Such geopolitical developments typically drive investors toward safe-haven assets, including precious metals like silver, as they seek to protect their portfolios from potential market volatility.

Market Outlook

The combination of international market dynamics and geopolitical factors has created a supportive environment for silver prices. The significant price movement from ₹2,52,725 to ₹2,62,834 per kg represents substantial momentum in the precious metals sector, reflecting both domestic and global market influences on commodity pricing.