Silver Smashes ₹4 Lakh Mark, Gold Joins The Record Rally: What Should Investors Do Now?

Gold and silver prices in India jumped to fresh records on January 29, as safe-haven buying and strong global cues pushed both metals higher on the Multi Commodity Exchange and in key physical markets such as Delhi.

Silver futures on the MCX crossed the ₹4 lakh per kg level for the first time during the early morning trade, touching ₹4,08,487 per kg. The contract rose 5.9% in a single session, adding ₹23,121 per kg and extending its winning streak to a fifth straight trading day.

Gold and silver prices surge

In Delhi’s physical market, silver climbed for a third consecutive session on January 28. Prices moved up by ₹15,000 to a record ₹3,85,000 per kg, compared with ₹3,70,000 per kg at the close on January 27. Gold in the capital also gained ₹5,000, or about 3%, reaching a lifetime high of ₹1,71,000 per 10 gram.

Gold futures tracked silver’s momentum on the MCX. February contracts jumped 8.9% in one day to an all-time high of ₹1,80,779 per 10 gram, from Wednesday’s close of ₹1,65,915 per 10 gram. Since the start of 2026, these gold futures have risen more than 31.2%.

Global cues drive gold and silver prices higher

Overseas, Comex gold futures broke above the key $5,600 per ounce mark for the first time, rising $286.6, or 5.4%, to a record $5,626.8 per ounce. Comex silver likewise touched a new high at $119.51 per ounce, supported by strong industrial demand and a weaker US dollar.

The table below summarises recent MCX futures levels mentioned for India:

Safe-haven demand lifts gold and silver prices

Since January 1, 2026, March silver futures on the MCX have surged nearly 71%, climbing from ₹2,39,000 per kg. Over the four sessions from January 22, silver advanced 24.8%, adding ₹81,198 per kg from ₹3,27,289 per kg, as investors increased exposure to precious metals.

Analysts say gold and silver are drawing support from safe-haven interest amid geopolitical tensions and softer currencies. Concerns over Iran and broader uncertainty have encouraged investors to move towards assets seen as stores of value, helping extend the current bull run in precious metals.

Geopolitics and policy support gold and silver prices

Geopolitical risk sharpened on January 28 after comments from US President Donald Trump. Trump warned Iran that "time is running out" to strike a deal on nuclear weapons and said any future US attack would be "far more severe". "Hopefully Iran will quickly 'Come to the Table' and negotiate a fair and equitable deal, President Trump said."

Monetary policy also added support. The US Federal Reserve kept interest rates unchanged on January 28, despite market expectations of further cuts. A steady rate environment, alongside a weakening dollar, tends to favour gold and silver, as holding these metals becomes more attractive relative to interest-bearing assets.

Beyond safe-haven flows, silver continues to benefit from rising industrial use. The metal is important for electric vehicles and solar power technologies, which keeps consumption strong. Analysts note that silver has consistently outperformed gold on returns for almost a year, helped by a widening supply-demand gap in global markets.

With supply constraints and recurring buying interest, silver has been hitting fresh highs in frequent sessions, while gold also trades near record levels. Market participants in India and abroad are watching price movements closely, as both metals remain sensitive to geopolitical headlines, currency shifts and changing expectations on interest rates.

Analyst outlook for gold and silver prices

Manoj Kumar Jain, partner at Prithvi Finmart, told ET that volatility in precious metals is likely to stay high for now, with gold and silver prices driven by moves in the dollar index, upcoming US jobless claims data and continuing geopolitical tension, which together are expected to keep intraday swings elevated for traders.

According to Jain, international gold may find support between $5,140 and $5,220 per ounce, with resistance seen around $5,500 to $5,650, while silver could hold support near $106.60 to $110 and face resistance between $118 and $123, giving a wide trading band for global investors tracking bullion.

On the domestic side, Jain expects MCX gold and silver prices to stay firm, with gold likely supported above Rs 1,61,600-1,64,000 and silver expected to hold above Rs 3,64,800-3,74,000, levels that many traders will watch as reference zones for near-term positioning on the exchange.

Jain suggested a buy-on-dips strategy in domestic bullion, saying traders may consider taking long positions in gold above Rs 1,64,400 with upside targets between Rs 1,70,000 and Rs 1,75,000, and in silver above Rs 3,64,000 with potential objectives in the Rs 4,00,000-4,10,000 range, provided key support zones hold for gold and silver prices.

Beyond local technical levels, analysts said the latest leg of the rally in gold and silver prices came soon after the US Federal Reserve decided to keep policy rates unchanged and signalled that further hikes are unlikely, reducing expectations of tighter monetary policy and supporting non-yielding assets like bullion, while silver also drew extra buying from investors seeking a relatively cheaper alternative to gold in a tight supply environment.

Disclaimer: The views noted that these market recommendations on gold and silver prices, along with comments on other assets or personal finance strategies, reflect the independent opinions of the experts quoted and do not represent the stance of Oneindia, leaving investors to assess risks and decisions based on their own judgement and financial conditions.