Investors rushed to buy gold and silver once again, pushing both precious metals to record-breaking levels. Strong demand for safe-haven assets fueled this bullish momentum, continuing last year's impressive performance.
Gold Futures Scale New Peak
February gold futures on the Multi Commodity Exchange opened slightly lower at ₹1,40,501 per 10 grams. However, they quickly gained strength and soared to a fresh all-time high of ₹1,43,590. This marked the fourth consecutive day of gains for gold, with prices crossing the ₹1.43 lakh threshold for the first time ever.
Silver Continues Its Spectacular Rally
March silver contracts on MCX also extended their winning run to four days. Prices jumped by ₹16,219 per kilogram, reaching another historic peak of ₹2,91,406. Over just four trading sessions, silver has accumulated a staggering gain of ₹48,052 per kilogram.
What's Driving This Rally?
Several factors are contributing to this sustained rally in precious metals. Geopolitical tensions in the Middle East remain a primary catalyst. Fresh global concerns have added to existing pressures. These include former US President Trump's capture of Venezuela's leader, renewed threats regarding Greenland, and violent protests in Iran.
Trump also issued warnings about imposing steep tariffs on countries trading with Iran or importing Russian crude oil. Furthermore, potential legal action against Federal Reserve Chair Jerome Powell has raised worries about central bank independence. All these developments are supporting higher gold and silver prices.
January Performance Highlights Strong Demand
In the first ten trading sessions of 2026, gold prices on MCX surged 5.8%. Silver outperformed dramatically, jumping 22% during the same period. This demonstrates robust investor appetite for assets perceived as safe during times of uncertainty.
Silver's rally has been particularly explosive. It took less than nine months for prices to climb from ₹1 lakh to ₹2 lakh per kilogram. The next ₹91,000 increase happened in under five weeks, highlighting the metal's volatile momentum.
Expert Warns of Silver's High-Risk Profile
Shantanu Bhargava, CEO of HNI Digital Advisory and Managed Solutions at Neo Wealth Management, cautions investors about the sharp rally in silver. In a recent report titled Silver, the Dual Asset, he notes that futures open interest has risen 18% year-over-year to 165,805 contracts. Retail micro contracts have skyrocketed 238%, indicating possible late-cycle positioning.
Bhargava explains that silver serves a dual role as both an industrial commodity and a monetary asset. This creates a high-beta profile. Silver typically rises 1.5 to 2 times more than gold during bull markets but also experiences sharper corrections during downturns.
He outlines potential risk scenarios. Under stress where investment demand collapses, silver's fundamental price floor might be around $61 per ounce. However, historical liquidity crises show prices can overshoot much lower, with a worst-case trough possibly near $25–$30.
Disclaimer: The views and recommendations mentioned are from individual analysts or broking firms, not Mint. Investors should consult certified experts before making any investment decisions.
