It was yet another record-breaking day for both gold and silver, as investor demand for these precious metals remained strong as intensifying tensions in the Middle East boosted the appeal of safe-haven assets, keeping the bullish momentum intact from last year’s stellar run.
The February gold futures on MCX opened lower at ₹1,40,501 per 10 grams, down from the previous close of ₹1,42,241, but gained momentum to hit a fresh record high of ₹1,43,590 ( ₹1,349 higher), crossing ₹1.43 lakh for the first time, and remained higher for the fourth day in a row.
Silver prices, too, extended their winning run to the fourth day, with March silver contracts on MCX gaining another ₹16,219 per kilogram to reach yet another historic high of ₹2,91,406. With today’s rally, prices have gained a cumulative ₹48,052 per kilogram in just four trading sessions.
This followed a 170% rally in 2025, led by geopolitical escalations, global trade tensions, monetary easing, ETF inflows, supply constraints, rising safe-haven demand, and a fall in exchange inventories.
It took less than nine months for silver to rise from ₹1 lakh to ₹2 lakh, and the next ₹91,000 was achieved in under five weeks.
Gold up 6%, silver jumps 23% in January on safe asset demand
Both gold and silver prices on the MCX surged 5.8% and 22%, respectively, in the first 10 trading sessions of 2026, as demand for safe‑haven assets remained strong.
This year, fresh concerns added to existing headwinds, driven by Trump’s capture of Venezuela’s leader, his renewed threats to take Greenland, and violent protests in Iran.
Earlier this week, Trump said that any country doing business with Iran would be subjected to a 25% tariff on any trade conducted with the United States.
This marked a second warning from Trump, as he also said he would announce 500% tariffs on countries that import crude oil from Russia.
In addition, the prospect of a criminal indictment against Fed Chair Jerome Powell revived concerns over the monetary authority’s independence, further supporting precious metal prices.
Silver’s dual role fuels sharp gains and steep corrections, says expert
The sharp rally in silver prices carries significant risk, said Shantanu Bhargava, CEO of HNI Digital Advisory and Managed Solutions, Neo Wealth Management. In its latest report titled Silver, the Dual Asset, he noted that futures open interest has reached 165,805 contracts, up 18% YoY, while retail micro contracts have surged 238%, signaling late-cycle positioning.
Bhargava added that under stress scenarios where investment demand collapses, silver’s fundamental floor is around $61 per ounce. However, historical liquidity flushes show that prices can overshoot sharply lower, with a worst-case trough near $25–$30.
He emphasized that silver’s dual role as an industrial commodity and monetary asset creates a high-beta profile, rising 1.5–2 times as much as gold in bull markets but correcting more sharply during downturns.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
About The Author
