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.

Precious metals markets witnessed a historic rally on January 12, 2026, as both gold and silver reached unprecedented levels amid growing investor appetite for safe-haven assets. The surge reflects mounting geopolitical concerns and shifting monetary policy expectations that continue to drive demand for traditional store-of-value assets.

Record-Breaking Performance

Spot gold delivered an impressive performance, climbing more than 1% to reach an all-time high of $4,563.61 per ounce on Monday, January 12. This milestone represents the first record peak for gold in 2026, underscoring the metal's continued appeal among investors seeking portfolio protection.

Silver also participated in the rally, scaling a new record high of $83.50 per ounce. The white metal's performance was supported by robust investment demand alongside strong industrial consumption patterns.

Market Drivers and Analysis

Analysts attributed the bullion price surge to multiple converging factors. Rising geopolitical uncertainty, including concerns around the US Supreme Court's impending decision on US President Donald Trump's tariff policy, created additional demand for safe-haven assets. Ongoing global flashpoints further contributed to the risk-off sentiment driving precious metals higher.

Growing expectations of interest rate cuts by the US Federal Reserve also provided support for non-yielding assets like gold and silver. Market participants are closely monitoring a busy macroeconomic calendar this week, with inflation data due from major economies including the US, India, and Germany, along with trade and investment numbers from China and commentary from Federal Reserve officials.

Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services Ltd, expressed optimism about the sector's prospects. "The bullion markets are expected to continue their positive momentum, and any corrective moves should be seen as a buying opportunity," Mer stated.

Technical Outlook and Price Targets

Prathamesh Mallya, DVP – Research, Non-Agri Commodities and Currencies at Angel One, maintained a positive outlook despite expected volatility. "Despite the volatility, the broader trend remains positive," Mallya noted, adding that movements in the US dollar, the Federal Reserve's policy outlook, and key inflation and employment data are likely to drive bullion prices in the near term.

From a technical perspective, Mallya expects gold to test levels of ₹1.41 lakh per 10 grams this week in the Indian market. For silver, Mer highlighted the metal's bullish structure, suggesting prices could test ₹2.80 lakh to ₹3.00 lakh per kg over time.

Supporting Factors and Investment Flows

Mer noted that safe-haven demand amid mixed economic data and geopolitical tensions continued to support prices, although intermittent strength in the US dollar capped gains at times. He highlighted sustained inflows into gold and silver exchange-traded funds, reflecting investors' preference for portfolio protection during uncertain times.

Silver's performance was particularly notable, benefiting from strong investment demand combined with robust industrial consumption. The dual demand sources have created a supportive environment for the white metal's price appreciation.

Long-Term Structural Support

Motilal Oswal Financial Services, in its Commodities Review 2025 & Preview 2026, projected continued structural support for both metals through 2026. The report identified persistent macro uncertainty, policy shifts, and supply-side constraints as key underpinning factors.

The analysis noted that gold continues to benefit from sustained central bank accumulation, providing a durable price floor. Silver's strength was attributed to prolonged supply deficits and rising structural demand from energy transition and infrastructure-related sectors.

Looking ahead, bullion markets are expected to remain closely aligned with macroeconomic data releases and policy-related developments, particularly the outcome of the US Supreme Court's tariff hearing, which could influence global risk sentiment in the short term.