Gold prices in India scaled fresh record highs on January 12, 2026, continuing an unprecedented rally that has seen the precious metal surge 3% over three consecutive trading sessions. The dramatic price movement reflects both domestic and international market dynamics, with geopolitical tensions driving investors toward safe-haven assets.

Record-Breaking Price Surge

The latest price data reveals significant gains across all gold categories on January 12:

For bulk purchases, 100 grams of 24-carat gold is currently priced at ₹14,21,500, while 22-carat gold costs ₹13,03,300 per 100 grams. The cumulative rise of ₹3,800 per 10 grams since January 9 represents a substantial 3% increase in just three trading sessions.

Silver Reaches Near ₹3 Lakh Mark

Silver prices witnessed an even more dramatic surge, with 1 kg jumping ₹10,000 to reach ₹2,70,000. The 100-gram silver rate increased by ₹1,000 to ₹27,000. Remarkably, silver has gained approximately ₹21,000 per kg in just the last two sessions, bringing it tantalizingly close to the ₹3 lakh milestone.

City-Wise Gold Price Variations

Gold prices across major Indian cities show slight variations due to local taxes and market conditions:

Chennai continues to command a premium over other metropolitan cities, with both 22-carat and 24-carat gold trading at higher rates compared to Mumbai, Bangalore, and Hyderabad.

Exchange and International Market Performance

The Multi-Commodity Exchange (MCX) also witnessed record-breaking levels. Gold futures maturing on February 5 surged 1.52% to ₹1,40,930, while silver futures for March 5 delivery are trading at ₹2,62,500 per kg after a 3.87% decline.

International markets showed similar strength, with spot gold jumping 1.3% to $4,469.49 per ounce. The precious metal hit a record high of $4,600.33 earlier in the day, while U.S. gold futures for February delivery firmed 2% to $4,591.10. Spot silver gained 3.5% to $82.72 per ounce.

Market Drivers and Outlook

According to the India Bullion and Jewellers Association, multiple factors are supporting precious metal prices. The ongoing geopolitical tensions in Iran following recent Venezuela-related developments have intensified safe-haven demand. Additionally, mixed U.S. employment data and Federal Reserve interest rate outlook continue to influence market sentiment.

The association noted that gold posted weekly gains as traders price in potential rate cuts in 2026, with lower interest rates traditionally supporting precious metal prices. The current rally builds on gold's best annual performance since 1979, demonstrating sustained investor appetite for the precious metal amid global uncertainties.

Gold broke through the $4,600 per ounce barrier for the first time on Monday, accompanied by silver reaching record highs, as investors sought safe-haven assets amid a criminal probe into Federal Reserve Chair Jerome Powell and escalating geopolitical tensions in Iran. The precious metals surge reflects growing uncertainty in global markets and expectations of monetary policy changes.

Record-Breaking Precious Metals Performance

Spot gold jumped 1.3% to $4,566.80 per ounce, after hitting a record high of $4,600.33 earlier in the day. U.S. gold futures for February delivery gained 1.8% to $4,579.10, demonstrating strong momentum across both spot and futures markets.

Silver outperformed other precious metals with a 4.1% gain to $83.20 per ounce, after touching an all-time high of $83.96 earlier in the session. Platinum climbed 3.4% to $2,349.59 per ounce, while palladium gained 3.4% to $1,877.96 per ounce.

Powell Criminal Probe Triggers Market Response

The precious metals rally gained momentum following revelations that Federal Reserve Chair Jerome Powell faces a criminal probe. Powell stated on Sunday that the Trump administration had threatened him with a criminal indictment over Congressional testimony, describing the action as a "pretext" aimed at pressuring the central bank to lower interest rates.

This development sent the dollar and U.S. equity futures lower, creating favorable conditions for non-yielding assets like gold and silver. According to Tim Waterer, KCM Trade's chief market analyst, "between events in Iran, and potential U.S. involvement, and the (Fed) chair being the focus of a criminal probe... U.S. futures turned lower on the Powell news, which was a green light for gold to take a run higher."

Iran Tensions Add Geopolitical Risk Premium

Unrest in Iran has reportedly killed more than 500 people, with Tehran threatening to target U.S. military bases if President Donald Trump carries out renewed threats to strike the country on behalf of protesters. The Iranian situation adds to broader geopolitical uncertainties as Trump flexes U.S. muscles internationally, having ousted Venezuelan President Nicolas Maduro and discussing acquiring Greenland by purchase or force.

Central Bank Demand Expected to Continue

Investors currently expect at least two Federal Reserve rate cuts this year, creating a supportive environment for precious metals. Non-yielding assets typically perform well in low-interest-rate environments and during periods of geopolitical or economic uncertainty.

Waterer anticipates continued institutional demand, stating: "I expect that central bank appetite for gold and silver will continue to grow this year, with precious metals perceived as being a lower risk alternative to the dollar." This expectation of increased central bank purchases could provide additional support for precious metals prices in the coming months.