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Informist, Wednesday, Jan. 21, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold and silver hit record highs on the Multi Commodity Exchange of India and the COMEX Wednesday on increasing safe-haven demand amid trade tensions between the US and the European Union and potential disruption within the North Atlantic Treaty Organization. Gold and silver contacts on the domestic exchange rose for the third consecutive day. 

 

At 1610 IST, the most-active February GOLD contract on the MCX was up 5% at INR 157,680 per 10 grams, after hitting a record high of INR 158,339 per 10 grams earlier in the day. The most-active February contract on COMEX was up 2% at $4,863.1 per ounce, after hitting a record high of $4,891.1 per ounce.

 

In the Mumbai spot market, the price of gold of 99.9% purity was INR 155,204 per 10 grams, higher than INR 146,375 per 10 grams Tuesday, said Kumar Jain, spokesperson for the India Bullion and Jewellers Association.

 

"I think crossing $4,800 just reinforces that people don't want to sell gold before $5,000. It's a combination of the traditional supporters for gold, which is rising debt, a weakening dollar, and geopolitical uncertainty," Nicholas Frappell, global head of institutional markets at ABC Refinery, was quoted by Reuters as saying.

 

The European Parliament is planning to suspend approval of the US trade deal in July, the BBC reported, citing sources close to its international trade committee. The suspension is set to be announced in Strasbourg, France, Wednesday. The move by the European Parliament will escalate tensions between the US and Europe, which began over the weekend when US President Donald Trump threatened to impose tariffs on eight European nations opposed to his plans to take control of Greenland.   

 

"The rally followed warnings from the United States and its NATO allies over President Donald Trump's push to control Greenland," SMC Global Securities said in a report. Trump said there is "no going back" on his goal to acquire Greenland, refusing to rule out the use of force to seize the Arctic island and criticised NATO allies, Reuters reported. "His remarks drew resistance in Europe. French President Emmanuel Macron said Europe would not give in to intimidation, rebuking Trump's threat to impose tariffs at Davos if Europe resists his Greenland ambitions," SMC said.    

 

"Turmoil in Japan's sovereign bond market has intensified concerns over fiscal sustainability in major economies, reinforcing the so-called debasement trade in which investors shun currencies and government debt in favour of hard assets," Dow Jones quoted Soojin Kim from MUFG as saying.

 

At 1612 IST, the most-active March SILVER contract on the MCX was up 3.3% at INR 334,202 per kilogram, after hitting a record high of INR 335,521 per kg earlier in the day. The most-active March contract on COMEX was up 0.4% at $94.97 per ounce, after hitting a record high of $95.78 per ounce.

 

Market participants await data on personal consumption expenditures, GDP, and unemployment, due Thursday, which will provide further cues to the US Federal Reserve's rate-cut trajectory.  

 

Outlook for the rest of the session:

--MCX gold seen at INR 152,000–INR 162,000 per 10 grams

--COMEX gold seen at $4,760.0–$4,960.0 an ounce

--MCX silver seen at INR 320,000-INR 350,000 per kg

--COMEX silver seen at $94.00-$96.50 an ounce

End

 

US$1 = INR 91.69

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

 

Edited by Saji George Titus

 

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