Silver prices surged by Rs 6,000 to hit a fresh lifetime high of Rs 2,71,000 per kg in the national capital on Tuesday, and gold climbed to yet another record of Rs 1,45,000 per 10 grams amid sustained buying by the stockists.
According to the All India Sarafa Association, the white precious metal extended its gains for the third consecutive day by jumping Rs 6,000, or 2.3 per cent, to Rs 2,71,000 per kilogram (inclusive of all taxes).
On Monday, the metal had surged by Rs 15,000, or 6 per cent, to touch a lifetime high of Rs 2,65,000 per kg from its close of Rs 2,50,000 per kg on Friday.
With the latest rise, the white metal had gained Rs 21,000, or 8.4 per cent, over the last three trading sessions.
So far this year, silver has appreciated by Rs 32,000, or 13.4 per cent, from Rs 2,39,000 per kilogram recorded on December 31, 2025.
Gold of 99.9 per cent purity also rose by Rs 400 to hit a fresh record of Rs 1,45,000 per 10 grams (inclusive of all taxes) on Tuesday. In the previous session, the yellow precious metal had climbed Rs 2,900 to reach Rs 1,44,600 per 10 grams.
Traders attributed the surge to sustained demand for safe-haven assets amid heightened geopolitical uncertainty.
"The record-breaking rally in precious metals continues, underpinned by persistent safe-haven demand that is sustaining the broader bullish trend in bullion, driven by prolonged geopolitical tensions, most recently centred on Iran," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
In the global markets, spot gold eased by USD 10.93, or 0.24 per cent, to USD 4,586.49 per ounce, after touching a record of USD 4,630.47 per ounce on Monday.
"Spot gold is consolidating its gains after a steep rally as it reached a fresh record high of USD 4,630 per ounce on Monday amid geopolitical concerns and growing threat to the Federal Reserve's independence," Praveen Singh, Head of Commodities, Mirae Asset ShareKhan, said.
He added that a joint statement was issued by a coterie of former Federal Reserve chairs, Treasury secretaries, and economists criticising the Department of Justice's probe into Fed Chair Jerome Powell, which has helped temper fears over the central bank's autonomy, leading to profit-taking in gold.
Spot silver was traded 0.58 per cent higher at USD 85.64 per ounce in the overseas trade. The white metal had surged by USD 6.3, or 7.9 per cent, on Monday to scale a fresh peak of USD 86.26 per ounce.
Silver leads commodity gains, surging to around USD 86.60 per ounce level, amid sustained investment demand and technical strength, Gaurav Garg, Research Analyst at Lemonn markets desk, said.
The US dollar index is trading near resistance levels and has lent support to bullion prices by eliminating depreciation headwinds, he added.
Gandhi said the market focus is now on US consumer inflation and new home sales data, which are set to be released later in the day. The outcome of the data release will provide fresh cues on the Federal Reserve's monetary policy and short-term direction for bullion prices.
It is an extraordinary week for the metals market. As of January 14, 2026, both gold and silver have indeed shattered previous records, driven by a "perfect storm" of geopolitical instability, currency shifts, and supply constraints.
Current Market Snapshot (Jan 2026)
The prices in the domestic Indian market (including taxes) have reached levels that were considered "long-term targets" only a few months ago:
Gold (24K): Hit a record high of ₹1,45,000 per 10 grams on January 13.
2 Silver: Reached a lifetime peak of ₹2,71,000 per kg on January 13, and in some cities like Hyderabad and Delhi, it surged further toward ₹2,80,000 - ₹2,90,000 on Makar Sankranti (Jan 14).
3 International Benchmarks: Gold is trading above $4,600/oz, and Silver has crossed the $88/oz mark.
4
Why are prices surging so fast?
The rally in 2026 is being fueled by four major "macro-shocks":
Geopolitical Chaos: Escalating tensions in the Middle East (specifically involving Iran) and new friction between the US and Venezuela have triggered a massive flight to "safe-haven" assets.
5 US Federal Reserve & Trump Administration: Reports of a Department of Justice probe into Fed Chair Jerome Powell have raised fears about the independence of the US central bank.
6 This uncertainty has weakened the US Dollar and made gold more attractive.China's Export Curbs (Silver): Effective January 1, 2026, China implemented strict curbs on silver exports, treating it as a "strategic metal."
7 This has caused a massive supply deficit globally.De-dollarization: Central banks (especially the BRICS nations) continue to dump US Treasuries in favor of physical gold to insulate their economies from US-led trade tariffs.
8
Expert Outlook for the Rest of 2026
Analysts are now revising their year-end targets:
Silver "Supercycle": Some brokerages, like Motilal Oswal, have pegged a target of ₹3,20,000 per kg for silver by the end of 2026, citing its critical role in AI infrastructure and green energy.
9 Gold Growth: Axis Securities and others predict gold could touch ₹1,55,000 by Diwali 2026 if the current geopolitical climate persists.
Investor Note: While the momentum is strong, analysts warn that the RSI (Relative Strength Index) for both metals is in "extreme overbought" territory. A short-term correction or "pullback" of 5–8% is likely as traders book profits.
Would you like me to compare the returns of Gold/Silver against the Nifty 50 for the past year to see which performed better?
No comments:
Post a Comment