Silver futures crossed the ₹3 lakh per kg milestone for the first time on Monday, January 19, as investors flocked back to safe-haven assets amid escalating geopolitical tensions. The precious metals rally was triggered by US President Donald Trump's threats of additional tariffs on European countries over Greenland, prompting the EU to prepare €93 billion in retaliatory tariffs according to Financial Times reports.

Record-Breaking Performance on MCX

Both gold and silver achieved unprecedented levels on the Multi Commodity Exchange (MCX). The March delivery silver futures contract performance showcased the metal's strong momentum:

Gold February futures demonstrated equally impressive gains, surging nearly ₹3,000 or over 2% to reach a record high of ₹1,45,500 per 10 grams. This recovery comes after precious metals faced pressure last week when easing US-Iran tensions reduced safe-haven demand and prompted profit-taking by investors.

International Market Performance

The global precious metals market mirrored the domestic surge, with both metals achieving new record highs:

The dollar index gained for the third consecutive week, settling at 99.20 with a 0.08% increase on Friday. The USD-INR January 28 futures contract also closed higher at 90.8325, up 0.46% on the National Stock Exchange.

Trading Strategy and Technical Levels

Market experts have identified key support and resistance levels for both metals. Manoj Kumar Jain of Prithvifinmart Commodity Research outlined specific trading ranges:

Gold Technical Levels:

• Support Zone: ₹1,41,400 – ₹1,40,000
• Resistance Zone: ₹1,43,300 – ₹1,44,000
• Target: ₹1,44,000
• Stop Loss: Below ₹1,39,500 (closing basis)

Silver Technical Levels:

• Support Zone: ₹2,83,500 – ₹2,78,800
• Resistance Zone: ₹2,91,400 – ₹2,95,000
• Target: ₹2,95,000
• Stop Loss: Below ₹2,74,000 (closing basis)

The recommended strategy involves buying both metals on dips, with specific targets and stop-loss levels to manage risk effectively.

Physical Gold Rates Across Major Cities

Physical gold prices varied across major Indian cities, reflecting local market dynamics:

The current rally in precious metals reflects the complex interplay between geopolitical tensions, currency movements, and safe-haven demand. While gold typically benefits from low interest rates, the current environment of reduced rate cut expectations creates an interesting dynamic for investors considering precious metals exposure.

Silver has achieved a historic milestone on the Multi-Commodity Exchange (MCX), surging past the ₹3 lakh per kilogram mark for the first time. The precious metal reached a high of ₹3,01,315 per kilogram on the exchange, marking a significant breakthrough in commodity trading.

Geopolitical Tensions Drive Precious Metal Demand

The surge in silver prices comes amid rising geopolitical uncertainties and potential trade volatility. Trump has threatened to impose a flat 10% tariff on European countries that object to Greenland's accession to the US and support the territory. This development has created market volatility that has benefited precious metals as safe-haven assets.

The tariff threat specifically targets eight European countries that have resisted the Greenland acquisition plan, including major economies such as France, Germany, and the United Kingdom. The proposed tariff structure shows an escalating timeline, with the 10% tax beginning on February 1 and increasing to 25% by June.

Broader Precious Metals Rally

Silver's milestone achievement is part of a broader rally across precious metals markets. The geopolitical tensions have increased demand for precious metals as investors seek safe-haven assets amid uncertainty.

Spot gold has increased 1.60% to $4,668.76 per ounce, having previously peaked at $4,690.59. Silver demonstrated even stronger performance with a 3.20% rise to $93.02, reaching a high of $94.12. The rally extends beyond gold and silver, with palladium and platinum also experiencing upward momentum.

Market Implications

The breakthrough of the ₹3 lakh per kilogram threshold for silver on MCX represents a significant psychological and technical milestone for the commodity. The convergence of geopolitical tensions and trade policy uncertainties has created an environment where precious metals are attracting increased investor interest as portfolio hedges.

The escalating nature of the proposed tariff structure, moving from 10% to 25% over a four-month period, suggests that market volatility may continue to support precious metal prices in the near term. This environment has proven particularly favorable for silver, which has outperformed other precious metals in percentage terms during this rally.