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Informist, Tuesday, Jan. 13, 2026

 

By Reshma Ravi

 

MUMBAI – The spot gold market opened higher Tuesday owing to rising safe-haven demand amid continued geopolitical tensions. Prices also rose due to political uncertainty on concern about the US Federal Reserve's independence, traders said.

 

Spot gold of 99.9% purity was being traded in Mumbai at INR 140,482 per 10 grams, up from INR 140,005 per 10 grams Monday, said Kumar Jain, spokesperson, India Bullion and Jewellers Association. Market sources, however, said discounts of up to INR 500 per 10 grams are being offered to retail buyers as the high prices are seen discouraging demand.

 

On Monday, geopolitical tensions rose after US President Donald Trump said he had imposed 25% tariff on goods from countries with commercial ties to Iran, a move that could exert pressure on Tehran as anti-government protests in the country enter the third week. Trump said the measure would be "effective immediately", although he did not provide details. In addition, Trump has been talking of possible military action against Iran, heightening uncertainty in the region.

 

"The strong upside (in gold) was driven by heightened geopolitical and political uncertainty, particularly concerns over the independence of the US Federal Reserve following developments around a criminal investigation involving Fed Chair Jerome Powell," Kedia Advisory said in a note. The Trump administration served grand jury subpoenas on the Fed and opened a criminal investigation on Powell, centred on his congressional testimony in June about a renovation project at the Fed headquarters, triggering fears of political interference in the central bank's working.

 

Powell, in a public statement, described the subpoenas and threats of criminal indictment as "pretexts" for exerting pressure on the Fed to alter its interest-rate policy, and reaffirmed the central bank's commitment to setting policy based on economic conditions rather than political influence.  End

 

Edited by Rajeev Pai

 

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