Gold and Silver Surge to Record Highs Amid Geopolitical Tensions and Safe-Haven Demand
Gold and silver achieved record highs on January 21, 2026, with gold crossing $4,800 per ounce globally and silver reaching $95.01 per ounce. Indian markets saw gold at ₹1.53 lakh per 10 grams and silver jumping 7% to ₹3.23 lakh per kilogram. The rally was driven by geopolitical tensions, US trade policy uncertainty, and safe-haven demand, with silver benefiting from additional industrial demand factors.
*this image is generated using AI for illustrative purposes only.
Gold and silver prices surged to unprecedented levels on January 21, 2026, as investors flocked to safe-haven assets amid escalating geopolitical tensions and trade policy concerns. The precious metals rally reflects growing global uncertainty and risk aversion among market participants.
Global Price Performance
International bullion markets witnessed significant gains across both precious metals. The following table shows the key price movements:
| Metal: | Current Price | Change (%) | Milestone |
|---|---|---|---|
| Spot Gold: | $4,806/oz | +0.8% | First time above $4,800 |
| Silver: | $95.01/oz | +0.4% | Near all-time high of $95.87 |
Analysts attributed the rally to persistent risk aversion amid renewed trade threats and geopolitical uncertainty affecting global markets.
Indian Market Response
Domestic bullion prices mirrored the global surge, with both metals reaching significant price levels:
| Metal: | Indian Price | Performance |
|---|---|---|
| Gold (99.9% purity): | ₹1.53 lakh per 10g | Following global trend |
| Silver: | ₹3.23 lakh per kg | +7% in single session |
Silver's performance was particularly notable, having crossed the ₹3 lakh mark earlier in the week before advancing further.
Market Drivers and Expert Analysis
Colin Shah, Managing Director of Kama Jewelry, identified renewed uncertainty around US trade policy, including proposed tariffs on several European countries, and broader geopolitical tensions as key drivers pushing investors towards precious metals. He noted that while elevated prices may temper discretionary jewellery demand in price-sensitive segments, gold remains well supported over the medium to long term due to its dual role as a store of value and adornment.
NS Ramaswamy, Head of Commodity & CRM at Ventura, highlighted that gold is trading near lifetime highs across exchanges, supported by mounting geopolitical risks ranging from potential trade retaliation between the US and Europe to unresolved conflicts in Eastern Europe and West Asia. He emphasized that a weakening Indian rupee has amplified domestic returns, as higher global prices and currency depreciation work in tandem.
Silver's Exceptional Performance
Silver's outperformance has drawn particular attention from market participants. Aamir Makda, Commodity & Currency Analyst at Choice Broking, noted that silver has delivered strong returns in 2026, supported by:
- Structural supply deficits
- Rising industrial demand from solar power sector
- Increased usage in electric vehicles
- Growing demand from data centres
While Makda sees scope for further upside, he cautioned that some technical indicators suggest waning momentum, prompting selective profit-taking by traders at elevated levels.
Investment Implications and Tax Considerations
Prashant Thacker, Managing Partner at Thacker & Associates, observed that rising volatility and global uncertainty have increased interest in various gold investment vehicles, including physical bullion, ETFs, gold mutual funds, and Sovereign Gold Bonds (SGBs). He noted that recent tax changes, such as the withdrawal of indexation benefits for certain gold investments, have altered post-tax returns, while SGBs continue to retain appeal due to tax-free maturity.
Shoyal Kumar, Co-Founder and CEO of Tredo, reported that retail investors are adopting a balanced approach at current price levels. Many investors are holding positions for stability, while some, particularly in silver, are booking partial profits after the sharp rally. Kumar noted relatively stronger demand among digital retail investors for silver, which is increasingly viewed as an affordable investment with both industrial and safe-haven appeal, along with a growing preference for staggered, small-ticket purchases to manage volatility and average costs.
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