Gold and Silver Prices Skyrocket to Record Highs
Gold and silver prices have surged to record highs on Monday, fueled by strong safe-haven demand. Investors are flocking to these precious metals as geopolitical risks escalate globally.
Unprecedented Price Levels
Spot gold prices climbed above $4,690 per ounce for the first time ever. Silver prices also reached a new peak, surpassing $94 per ounce. On the Multi Commodity Exchange (MCX) in India, gold topped Rs 1,45,000 per 10 grams. Silver prices on the MCX soared to Rs 3,04,000 per kilogram.
Geopolitical Tensions Drive Demand
Jateen Trivedi, VP research analyst at LKP Securities, highlighted the impact of recent trade announcements. "Trump's announcement of a 10 per cent tariff on EU nations has revived uncertainty around global trade," Trivedi said. "This move raises questions over the progress of the US-India trade deal, pushing investors toward safe assets like gold and silver."
Silver's Remarkable Performance
Silver has shown exceptional strength in recent months. As of mid-January, silver has delivered nearly 30 per cent returns. This performance builds on the strong momentum from 2025.
Last week, silver prices experienced heightened volatility. Prices briefly dipped toward $86 per ounce due to delayed US tariffs and Chinese trading curbs. However, silver quickly rebounded to close near $90 per ounce.
Industrial Demand Supports Silver
Silver has evolved into a crucial industrial commodity. Several factors are driving this demand:
- Expansion of solar photovoltaic capacity
- Increasing demand from electric vehicles (EVs)
- Rising needs of artificial intelligence (AI) and data centers
Tight physical supply conditions have further supported silver prices in recent trading sessions.
Market Outlook
The combination of safe-haven demand and strong industrial fundamentals continues to support precious metal prices. Market analysts expect this trend to persist as global uncertainties remain elevated. Investors are closely monitoring trade developments and geopolitical events that could influence future price movements.
