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Informist, Tuesday, Jan. 20, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold and silver hit another record high Tuesday on the Multi Commodity Exchange of India, tracking the gains in COMEX due to a weak dollar. Prices also rose owing to increasing safe-haven demand amid trade tensions between the US and the European Union. The price of silver surged to INR 327,998 per kg, hitting the upper circuit on the domestic exchange. On COMEX it surged above $95 per ounce. 

 

At 1614 IST, the most-active February GOLD contract on the MCX was up 2% at INR 149,150 per 10 grams, after hitting a record high of INR 152,500 per 10 grams earlier in the day. The most-active February contract on COMEX was up nearly 3% at $4,732.0 per ounce, after hitting a record high of $4,738 per ounce.

 

In the Mumbai spot market, the price of gold of 99.9% purity was INR 146,375 per 10 grams, higher than INR 143,978 per 10 grams Monday, said Kumar Jain, spokesperson for the India Bullion and Jewellers Association.

 

At 1616 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.6% at 98.48. A weaker dollar makes dollar-denominated commodities, such as gold, cheaper for those holding other currencies, aiding demand. 

 

"...Gold is likely to trade with the positive bias and rise further towards $4700 level on weak dollar. Further, demand for safe haven may increase as US President Donald Trump's threats to resurrect trade war with Europe shook investors confidence," ICICI Direct said in a report. Trump has announced new tariffs on eight European countries over his push to acquire Greenland. An extra 10% import tariff on goods from these countries will be imposed starting Feb. 1. According to Reuters, the tariff will rise to 25% from Jun. 1 and remain in place until an agreement is reached for the US to take over Greenland. The countries targeted include France, Germany, and the UK, along with some northern European countries.

 

Monday, Denmark dispatched additional troops to Greenland as Trump told Norway he no longer needed to think "purely of peace" after not winning the Nobel Peace Prize, Dow Jones reported. "At the moment, the reaction to any market event seems to be 'buy gold and silver'," Dow Jones quoted IG's Chief Market Analyst Chris Beauchamp as saying.

 

"Adding to the volatility, the Trump administration's repeated attacks on the Federal Reserve intensified investor concerns about central bank independence. This has reinforced the debasement trade. Investors are favouring gold and silver over currencies and government bonds amid rising US debt levels and heightened policy unpredictability," ING analysts said.

 

At 1617 IST, the most-active March SILVER contract on the MCX was up 3% at INR 320,880 per kg, after hitting a record high of INR 327,998 per kg earlier in the day. The most-active March contract on COMEX was up 7% at $94.87 per ounce, after hitting a record high of $95.41 per ounce. "Although silver had faced pressure earlier after the US administration excluded critical minerals, including silver, from immediate tariffs, ongoing geopolitical uncertainty and structural supply tightness supported prices," Kedia Advisory said in a note. 

 

Outlook for the rest of the session:

--MCX gold seen at INR 146,000–INR 154,000 per 10 grams

--COMEX gold seen at $4,600.0–$4,800.0 an ounce

--MCX silver seen at INR 324,000-INR 335,000 per kg

--COMEX silver seen at $94.00-$96.00 an ounce

 

End

 

US$1 = INR 90.97

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

 

Edited by Rajeev Pai

 

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