Gold prices witnessed extraordinary volatility on January 12, with the precious metal achieving a historic milestone before experiencing a sharp correction. The dramatic price movements occurred alongside significant gains in silver, highlighting increased investor interest in precious metals amid global market uncertainties.

Record-Breaking Price Action

Gold reached unprecedented levels during early trading hours, with spot gold briefly touching an all-time high of $4,610.5 per ounce on Comex at 1:05 AM GMT. However, the rally proved short-lived as prices declined rapidly to $4,580.60 by 2:28 AM GMT, still maintaining a solid 1.77% gain from the previous close.

Silver's Strong Performance

Silver demonstrated robust momentum alongside gold, with spot silver climbing 4.1% to reach $83.20 per ounce. The white metal also achieved its own milestone, hitting an all-time high of $83.96 earlier in the trading session before settling at current levels.

Domestic Market Performance

On the Multi Commodity Exchange (MCX), gold futures showed more subdued movement compared to international markets. The futures closed at ₹13,78,875 per 10 grams of 24-carat purity, registering a modest 0.04% increase. The Monday session opened at ₹14,08,700, representing a 1.48% gain from the previous close of ₹13,88,750.

Current Gold Pricing Structure

Gold prices vary significantly based on purity levels, with the following current rates:

City-wise Price Distribution

Gold rates across major Indian cities showed remarkable uniformity with only marginal differences attributed to local taxes, jeweller margins, and logistics costs:

Market Analysis and Outlook

According to Justin Khoo, Senior Market Analyst - APAC at VT Market, the record highs reflect "a decisive shift in global risk positioning rather than a short-term anomaly." He noted that the strength is particularly significant given the USD Index holding close to 99, indicating robust safe-haven demand.

Key factors supporting precious metals include:

• Elevated geopolitical uncertainty
• Expanding global defense expenditure
• Persistent inflation pressures with US CPI projected at 2.7% year-on-year
• Tariff-led fiscal expansion estimated at $250-270 billion reinforcing hedging demand

The current market environment suggests continued structural support for precious metals, even with potential near-term consolidation phases.

Silver prices achieved a remarkable milestone on the Multi Commodity Exchange (MCX), hitting a fresh lifetime high as investors sought refuge in precious metals amid escalating global uncertainties. The March 2026 contract surged to Rs 2,63,996 per kg during the trading session before easing to Rs 2,62,092, marking a substantial daily gain of Rs 9,367 or 3.71%.

Strong Weekly Performance Driven by Global Factors

The precious metal's exceptional performance extended beyond the single session, with silver climbing over 7.00% during the previous week. This surge was primarily attributed to mounting tensions in the Middle East, political instability in Venezuela, and renewed pressure on the U.S. Federal Reserve regarding monetary policy decisions.

With inflation showing signs of cooling and expectations of a prolonged rate pause gaining momentum, investors have increasingly turned to precious metals as safe-haven assets, providing substantial support to silver prices.

Expert Analysis Points to Continued Momentum

Ponmudi R, CEO of Enrich Money, emphasized silver's strong underlying demand characteristics, noting the metal's behavior as a "high-beta leader within the precious metals space." According to his analysis, silver continues to demonstrate aggressive absorption of price dips, indicating robust market support.

The technical outlook remains constructive, with key resistance and support levels clearly defined:

International Market Dynamics

Rahul Kalantri, VP Commodities at Mehta Equities, highlighted the reinforcing factors behind silver's upward trajectory, including both global risk factors and speculative interest. His technical analysis reveals specific support and resistance zones that traders are monitoring closely.

On the international front, silver maintains strength above $78.00 per ounce, with immediate resistance positioned near $82.70. The domestic market shows technical support around Rs 2,48,810 and Rs 2,44,170, with resistance at Rs 2,59,470.

Balanced Outlook Amid Volatility Concerns

While the current environment appears favorable for precious metals, some market participants urge caution regarding silver's sharp ascent. Ross Maxwell, Global Strategy Operations Lead at VT Markets, acknowledged the long-term support from industrial demand, particularly from green technologies, while noting potential short-term risks.

Maxwell's analysis suggests that speculative inflows attracted by recent rallies could reverse quickly if macro risk appetite returns or speculative interest diminishes. However, he believes a sustained crash remains unlikely unless broader market sentiment shifts decisively toward risk-on assets.

Market Outlook

Silver's current trajectory reflects a convergence of multiple supportive factors, including safe-haven buying, strong industrial demand, and favorable technical positioning. The metal's performance underscores its dual nature as both an industrial commodity and a store of value during uncertain times.

Market participants continue to monitor key support zones and global developments that could influence silver's direction in the coming sessions, with volatility expected to remain elevated as various market forces compete for influence.