Gold and Silver Forge Historic Highs: MCX Rates Explode Amid Global Turmoil

New Delhi | January 29, 2026 — India’s precious metals market witnessed an unprecedented “monetary reset” today as prices on the Multi Commodity Exchange (MCX) shattered all-time records. Gold futures for February delivery touched a staggering peak of ₹1,80,501 per 10 grams, while Silver made history by breaching the psychological ₹4 lakh per kilogram mark, trading as high as ₹4,07,456.

This vertical ascent marks one of the most volatile and bullish periods for bullion in decades, with silver alone gaining nearly 60% since the start of January 2026.

The Perfect Storm: Why Prices are Skyrocketing

The current rally is not driven by a single event but rather a “perfect storm” of geopolitical, macroeconomic, and industrial triggers that have sent investors scurrying toward safe-haven assets.

1. Geopolitical Firestorms

The primary catalyst remains the escalating tension in the Middle East. Recent warnings from the U.S. administration regarding Iran’s nuclear program, coupled with an increased military presence in the Gulf, have stoked fears of a broader conflict. Historically, gold is the ultimate “gauge of fear,” and as regional stability wavers, capital is flowing rapidly into the yellow metal.

2. The “Greenland Issue” and the Dollar’s Slump

Market sentiment has been rattled by a diplomatic standoff between the U.S. and several European nations over the Greenland acquisition proposal. U.S. President Donald Trump’s threat of 100% to 200% tariffs on European goods (including French wines) has weakened the U.S. Dollar to a four-year low. Since gold and silver are priced in dollars, a weaker greenback makes them significantly cheaper for holders of other currencies, fueling global demand.

3. Central Bank & ETF Buying

Central banks, led by China and Poland, have been aggressively accumulating gold reserves to diversify away from the dollar. Simultaneously, Global Gold ETFs saw their assets under management double in the last year, reflecting a massive shift in institutional portfolios toward precious metals.

4. Silver’s Industrial Crunch

While gold is a monetary hedge, silver is also an industrial powerhouse. A global supply deficit—now in its fifth consecutive year—has been exacerbated by China’s ban on silver exports. With surging demand from the solar energy, semiconductor, and EV sectors, silver is experiencing a “short squeeze” that has pushed it to outperform almost every other asset class in 2026.

Market Summary: Key Rates at a Glance

Commodity	MCX Delivery	Price (Today’s Peak)	% Change (Jan 2026)
Gold (24K)	Feb 2026	₹1,80,501 / 10g	~20%
Silver	Mar 2026	₹4,07,456 / kg	~60%

Analyst Outlook: Should You Buy Now?

Analysts at leading brokerages suggest that while the long-term trend remains “exceptionally bullish,” the market is currently in an overheated zone.

“The RSI (Relative Strength Index) is in extreme overbought territory. While the momentum is undeniably strong, chasing the price at these levels risks buying at a near-term peak,” warns Jateen Trivedi, Research Analyst at LKP Securities.

Experts recommend a “buy on dips” strategy rather than large lump-sum investments at record highs. For retail consumers, some jewellers have begun proposing EMI options to make purchase of gold jewellery more accessible at these historic price points.