Gold and silver prices surged to record highs on Monday as investors flocked to precious metals amid a weakening US dollar and escalating geopolitical tensions. The rally was fueled by developments involving the Federal Reserve and ongoing unrest in Iran, creating a perfect storm for safe-haven asset demand.

Precious Metals Performance

Both gold and silver demonstrated exceptional strength, with silver outperforming its precious metal counterpart. The following table highlights the key price movements:

Silver's performance was particularly noteworthy, building on momentum from the previous week when it surged nearly 10.00%. The metal reached an unprecedented high of $83.88 before settling at $83.19, demonstrating the strong appetite for precious metals among investors.

Federal Reserve Developments Impact Dollar

The precious metals rally coincided with significant weakness in the US dollar following news that Fed Chair Jerome Powell had been served grand jury subpoenas from the Justice Department. According to Bloomberg reports, these subpoenas relate to Powell's June congressional testimony concerning renovations of the Fed's headquarters.

This development led to a notable retreat in the US dollar from its strongest position in a month. The dollar index, which measures the greenback's performance against six major currencies, declined 0.30% to 98.899, effectively ending a five-day winning streak.

Geopolitical Tensions Add Support

Intensifying protests in Iran contributed additional support to precious metals prices, as geopolitical uncertainty typically drives investors toward safe-haven assets. The combination of domestic US political developments and international tensions created a favorable environment for gold and silver appreciation.

Market Outlook

The convergence of multiple factors—including Federal Reserve legal challenges, dollar weakness, and geopolitical instability—has created strong momentum for precious metals. Silver's outperformance relative to gold, with gains of 4.85% compared to gold's 1.88% increase, reflects heightened investor interest in the industrial precious metal. The sustained rally in both metals, particularly silver's nearly 10.00% gain from the previous week, indicates robust underlying demand amid current market uncertainties.

Gold and silver prices registered gains across major Indian cities on January 12, 2026, with both precious metals showing upward momentum. According to Bullions' website, gold is currently trading at ₹1,39,400 while silver has reached ₹2,52,380, reflecting increased demand in domestic markets.

Gold Rates Across Major Cities

Southern markets continue to lead gold pricing across the country. Chennai recorded the highest rates among major metros at ₹1,39,550 per 10 grams for 24-carat gold, while Hyderabad followed closely at ₹1,39,660. Bengaluru maintained its position at ₹1,39,250, keeping southern cities well above national averages.

Mumbai, the financial capital, recorded 24-carat gold at ₹1,39,140 per 10 grams, while Kolkata reported rates at ₹1,38,960. Delhi registered the most conservative pricing among major cities at ₹1,38,900, creating a notable price differential with southern markets.

Silver Market Performance

Silver demonstrated stronger gains compared to gold, with the white metal averaging ₹2,52,380 across Indian markets. Mumbai silver traded at ₹2,51,920 per kg according to market data, while Delhi recorded prices at ₹2,51,490 per kg.

Southern cities maintained their premium positioning in silver markets as well. Chennai commanded the highest silver prices at ₹2,52,660 per kg, while Hyderabad followed at ₹2,52,320 per kg. The price variations reflect local demand patterns and regional tax structures affecting precious metal trading.

International Market Context

In international markets, gold prices stabilized around $4,575 per ounce, influenced by a stronger US dollar environment. The precious metal sector has emerged from a record-setting performance period, supported by multiple favorable factors including falling interest rates, heightened geopolitical tensions, and reduced confidence in traditional currency markets.