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Informist, Wednesday, Jan. 14, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold and silver rose to record highs on the Multi Commodity of India and the COMEX Wednesday. Prices rose due to increasing safe-haven demand amid geopolitical tensions and growing expectations of a rate cut by the US Federal Reserve this year.

 

At 1626 IST, the most-active February GOLD contract on the MCX was up 0.8% at INR 143,343 per 10 grams, after hitting a record high of INR 143,500 per 10 grams earlier in the day. The most-active February contract on COMEX was up nearly 1% at $4,642.8 per ounce, after hitting a record high of $4,647.6 per ounce earlier in the day.

 

Spot gold of 99.9% purity traded in the Mumbai market at INR 142,152 per 10 grams, up from INR 140,482 per 10 grams the previous day, said Kumar Jain, spokesperson for the India Bullion and Jewellers Association.

 

US consumer inflation moderated in December, reinforcing expectations of rate cuts by the Federal Reserve this year. US core CPI inflation rose 0.2% on month and 2.6% on year in December, the Labor Department said. Analysts in a Reuters poll had expected a rise of 0.3% on year and 2.7% on month. Although US inflation moderated in December, market participants are still expecting a rate cut by the US Fed this year, said Manoj Jain, director, Prithvi Finmart. "Fed is expected to hold rates steady at its January meeting but market is pricing two more rate cuts this year," ICICI Direct said in its report. Typically, gold and silver perform well in a low interest rate environment due to its non-interest-yielding nature.

 

"US President Donald Trump also welcomed the inflation figures, reiterating his push for the US Federal Reserve chair Jerome Powell to cut interest rates meaningfully," SMC Global Securities said in a report.

 

Gold prices also rose due to increasing safe-haven demand after Trump's comments about the ongoing protests in Iran. "Iranian Patriots, keep protesting - take over your institutions!!!... help is on its way," he said in a post on Truth Social. An Iranian official said about 2,000 people have been killed so far in the nationwide protests. "Renewed geopolitical tensions, concerns about the independence of the Federal Reserve and a lack of fiscal discipline in the US will likely play major roles in sustaining investment inflows into gold," Dow Jones quoted Daniel Hynes, senior commodity strategist at ANZ, as saying.

 

Uncertainty over the Fed's independence has driven investors toward safe-haven assets, boosting demand for precious metals. On Tuesday, global central bank chiefs and top chief executive officers from the Wall Street lined up in support of Fed Chair Powell after the Trump administration threatened him with a criminal indictment. The US president has repeatedly attacked the Fed chair for not reducing interest rates quickly enough. Tensions escalated earlier this week when Powell issued a sharply worded video message claiming he was being prosecuted by the US Department of Justice.

 

"Major banks remain bullish, with several raising 2026 gold price forecasts toward $4,900–$5,000/oz, citing sustained geopolitical risks, rising global debt, and central bank demand," Kedia Advisory said in a note.

 

The most-active March SILVER contract surged over $90 per ounce on COMEX on safe-haven demand and US Fed rate cut bets. "Major banks remain constructive on silver's outlook, with forecasts for 2026 raised sharply, citing a weaker dollar, gold's momentum, and sustained institutional demand despite volatility concerns," Kedia Advisory said. At 1627 IST, the most-active March silver contract on the MCX was up 4% at INR 285,700 per kg, after hitting a record high of INR 287,990 per kg. The most-active March contract on COMEX was up 4% at $90.07 per ounce, after hitting a record high of $91.37 per ounce.

 

Outlook for the rest of the session:

--MCX gold seen at INR 141,000 –INR 146,000 per 10 grams

--COMEX gold seen at $4,550.0–$4,700.0 an ounce

--MCX silver seen at INR 272,000-INR 300,000 per kg

--COMEX silver seen at $89.50-$91.00 an ounce

End

 

US$1 = INR 90.29

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Nishant Maher

 

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