It seems there is no stopping the rally in precious metals, as both silver and gold extended their record-breaking run into Wednesday’s trade, with investors continuing to favour safe-haven assets amid escalating trade and geopolitical tensions.
Concerns have mounted that tariff threats by US President Donald Trump on European countries linked to Greenland could escalate into a full-scale global trade war, triggering panic selling across major global markets and making precious metals more appealing to investors.
Alongside this, renewed trade worries have also led to a widespread sell-off in US markets, as investors appeared to be losing confidence in the world’s largest economy. This, in turn, has pressured the US dollar, which traded lower for the third consecutive day, falling to 98.38.
A weaker dollar generally supports commodities, as greenback-priced metals become cheaper for holders of other currencies.
Gold tops ₹1.58 lakh, silver crosses ₹3.35 lakh
February gold futures on MCX opened higher in today’s session at ₹1,51,575 per 10 grams, up from the previous close of ₹1,50,565, and went on to hit a new record high of ₹1,58,475 ( ₹7,910 higher), ₹1.58 lakh for the first time”>crossing ₹1.58 lakh for the first time and extending the winning streak to a third consecutive session.
Over the last 15 trading sessions (including today), gold prices on MCX have gained ₹22,892 per 10 grams. In the international market, gold prices hit a new record, soaring past $4,800 per troy ounce.
After rallying ₹13,397 per kilogram in Tuesday’s session, the silver March delivery futures contracts strengthened further, spiking another ₹11,850 to register a historic peak of ₹3,35,521, taking month-to-date returns to 42%, or ₹98,000.
On Tuesday, Trump said there was “no going back” on his goal to control Greenland, refusing to rule out taking the Arctic island by force and lashing out at NATO allies.
Meanwhile, French President Emmanuel Macron said Europe would not give in to bullies or be intimidated, in a scathing criticism of Trump’s threat of steep tariffs at Davos, Reuters reported.
While the European nations are reportedly assessing various measures to counter the Trump tariff threats, Trump expressed confidence that the European Union would continue to invest in the US even if he imposed new tariffs related to his quest to take control of Greenland.
Gold, silver set to continue rally as long as key levels hold, says expert
Ponmudi R, CEO of Enrich Money, said, “MCX Silver continues to outperform with a powerful breakout and strong follow-through buying. The rising channel remains very steep, with the 20-day EMA near ₹3,17,000 acting as reliable dynamic support. Sustained trade above ₹3,26,000 keeps momentum decisively bullish.”
He added, “Immediate upside targets are placed at ₹3,30,000– ₹3,32,000, with scope to extend toward ₹3,35,000– ₹3,50,000 over the coming months. Any dip toward ₹3,15,000– ₹3,13,000 should be viewed as a high-conviction accumulation opportunity.”
On gold, Ponmudi said, “MCX Gold continues to mirror global strength, further supported by persistent weakness in the rupee, which has slipped past the psychological 91-per-dollar mark and is now trading around the 91.15–91.25 zone. The rising channel remains firmly intact, with the ₹1,49,300– ₹1,50,300 zone acting as strong dynamic support.”
He pointed out that dips are consistently being absorbed, reinforcing the dominance of buyers. “A sustained breakout above ₹1,58,000– ₹1,59,000 can unlock the next leg toward ₹1,62,000– ₹1,65,000. The broader trend remains strongly bullish, with momentum firmly in favour of higher levels,” the CEO added.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
