More Stories

Informist, Monday, Jan. 12, 2026

MUMBAI – The spot gold market opened higher Monday, tracking the record highs in the futures market on the Multi Commodity Exchange and COMEX, as escalating unrest in Iran, mounting political pressure on the US Federal Reserve, and weaker US jobs data lifted demand for safe-haven assets, traders said.

Federal Reserve Chair Jerome Powell said Sunday the central bank has been served with grand jury subpoenas over his Senate testimony, a move that unsettled markets and revived concerns about the independence of the central bank, traders said. Powell said US President Donald Trump's administration had threatened him with a criminal indictment over his June Congressional testimony on ongoing renovations of its Washington headquarters, an action Powell called a "pretext" aimed at putting further pressure on the central bank to lower rates. 

The developments pressured the US dollar, making gold cheaper for holders of other currencies and adding momentum to the rally.

Spot gold of 99.9% purity was traded in the Mumbai market at INR 140,005 per 10 grams, up from INR 137,122 per 10 grams previous day, said Kumar Jain, spokesperson at the India Bullion and Jewellers Association. With demand for the yellow metal being strong, there is no discount in the market, traders said.

Safe-haven demand was also fueled by deepening turmoil in Iran, where unrest linked to anti-government protests has killed more than 500 people, according to reports. Tensions escalated after Tehran warned it could target US military bases if Trump intervenes on behalf of protesters, raising fears of a broader regional conflict, according to a report on investing.com.

Also on the market's mind is the continuing crisis related to Venezuela. The US continued its blockade of Venezuela following the removal of Venezuelan President Nicolas Maduro, having seized another two tankers linked to Venezuelan oil exports in separate operations last week.

Additionally, the US data pushed up demand for gold. US non-farm payrolls data released Friday showed lower-than-expected jobs growth, reinforcing bets that the Federal Reserve will continue cutting interest rates. Traders are currently pricing in two more rate cuts this year. Typically, gold performs well in a low-interest-rate environment due to its non-interest-yielding nature.  End

Reported by Abhijit Doshi

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.