Silver prices achieved a historic milestone on Tuesday, reaching an unprecedented level of ₹2.72 lakh per kg, while gold maintained its position near record highs. The surge in precious metals reflects growing market uncertainty driven by recent geopolitical developments.

Silver Reaches New Peak

The white metal's climb to ₹2.72 lakh per kg represents a significant breakthrough, establishing a new record high for silver prices in the Indian market. This achievement underscores the metal's strong performance amid current market conditions.

Gold Maintains Strong Position

Gold prices remained stable near their record levels during Tuesday's trading session. The yellow metal continues to demonstrate resilience, holding its ground at elevated price points that reflect sustained investor interest in precious metals.

Geopolitical Factors Drive Market Movement

The price surge in both metals was primarily attributed to rising geopolitical uncertainty following the United States' decision to impose a 25% tariff on trade with any country conducting business with Iran. This policy development has created additional market volatility, prompting investors to seek refuge in traditional safe-haven assets.

The precious metals market continues to respond to international policy decisions, with both gold and silver benefiting from their traditional role as store-of-value assets during periods of economic and political uncertainty.

Gold prices achieved unprecedented heights across global and domestic markets, driven by a combination of geopolitical tensions and expectations of further monetary policy easing by the US Federal Reserve. The precious metal's remarkable performance reflects shifting global risk positioning and sustained safe-haven demand.

Market Performance and Price Movements

Gold futures on Comex reached a peak of $4,639 per ounce before declining 0.80% to $4,602 per ounce on January 13 at 3:08 am GMT, representing a 0.26% decline from the previous close. On the domestic front, MCX futures opened the Tuesday session at ₹1,41,775 for 10 grams of 24-carat purity, marking a 0.18% decline from the previous close of ₹1,41,991.

The domestic gold market witnessed a historic milestone on January 12, when prices peaked at a record ₹1,42,500 per 10 grams, showcasing the metal's strong performance in the Indian market.

Current Gold Pricing by Purity

Gold prices vary significantly based on purity levels, with 24-carat commanding the highest premium. Current domestic pricing reflects the metal's elevated levels across all purity grades.

City-wise Gold Rates Across India

Gold rates across India's major cities demonstrated remarkable uniformity, with only marginal differences attributed to local taxes, jeweller margins, and logistics costs. Chennai showed slightly higher rates compared to other metropolitan cities.

Market Drivers and Analysis

According to Justin Khoo, Senior Market Analyst - APAC at VT Market, gold's performance to all-time highs reflects a decisive shift in global risk positioning rather than a short-term anomaly. The strength remains notable given the USD Index holding close to 99, indicating that safe-haven demand remains firmly intact.

Key market drivers include:

• Elevated geopolitical uncertainty
• Expanding global defense expenditure
• Persistent inflation pressures with US CPI projected at 2.70% year-on-year
• Tariff-led fiscal expansion estimated at $250-270 billion reinforcing hedging demand

Technical Outlook and Price Trajectory

The Augmont Bullion report published on January 12 noted that gold's surge to fresh record highs was driven by rising geopolitical tensions and growing expectations of further US Federal Reserve rate cuts. The gold rally began in mid-August around $3,400, reaching $4,400 by mid-October before retracing and taking support from the uptrend line.

With gold crossing its previous high resistance of $4,570, technical analysts are monitoring key levels at $4,745-50 (78.60% Fibonacci extension) and $4,966-70 (100% Fibonacci extension) for potential future targets.