Gold and silver prices continued to trade higher for the fourth consecutive session on Tuesday, 6 January. Although there was no aggressive rally like yesterday, both metals are inching towards their record peaks, having reached levels last seen in the final week of 2025.
Gold futures for February delivery on MCX surged another 0.50%, or ₹656, to the day’s high of ₹1,38,776 per 10 grams, edging closer to the record high of ₹1.4 lakh. It closed the Monday’s session with a ₹2,359 jump. The four-day rally has led the yellow metal to gain cumulatively by 2.30%.
After surging ₹9,839 per kilogramme in Monday’s session, ₹6,02″>silver prices advanced another ₹6,025 to the day’s high of ₹2,52,180, coming closer to the all-time high of ₹2,54,174 and bringing the four-day rally to nearly 7%.
Spot platinum rose 3.56% to $2,356 per ounce, while palladium climbed 3% to $1,752. Platinum and palladium, widely used in automotive catalytic converters, have surged due to tight supply, tariff uncertainty, and a rotation from gold investment demand.
Geopolitical tensions drive safe-haven demand
The rising geopolitical tensions, which flared up following US military attacks in Venezuela that led to the capture of President Nicolás Maduro and his wife, have further boosted demand for safe-haven assets, causing them to extend their record-breaking run from the previous year.
Alongside this, the rally also drew support from growing expectations that the US Federal Reserve could continue its loose monetary policy in 2026, with the latest US economic data strengthening those bets.
Traders are currently pricing in two US rate cuts this year, meaning non-yielding assets like gold are likely to remain well-supported in a low-interest-rate environment.
Gold volatility likely, but uptrend intact, says analyst
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, “Risk sentiment continues to favour higher allocation toward gold amid renewed geopolitical tensions, with reports of the US crossing the Venezuela border and heightened alerts involving its leadership adding to global uncertainty.”
“These developments are keeping safe-haven demand firm. Gold is expected to remain volatile but biased upward, with a trading range seen between ₹1,37,000 and ₹1,42,000 in the near term,” he further stated.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
