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Informist, Wednesday, Jan. 28, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold hit record highs on the Multi Commodity Exchange of India and COMEX Wednesday due to increasing safe-haven demand amid heightened geopolitical tensions. Gold prices soared past the $5,300-per-ounce level on the COMEX. Silver contracts also rose to a record high on the domestic exchange.

 

At 1643 IST, the most-active February GOLD contract on the MCX was up 4% at INR 164,202 per 10 grams, after hitting a record high of INR 164,900 per 10 grams earlier in the day. The most-active February contract on COMEX was up 4% at $5,262.4 per ounce, after hitting a record high of $5,306 per ounce earlier in the day.

 

In the Mumbai spot market, the price of gold of 99.9% purity was at INR 163,827 per 10 grams, up from INR 159,027 per 10 grams Tuesday, Kumar Jain, spokesperson for the India Bullion and Jewellers Association, said. 

 

At 1644 IST, the most-active March SILVER contract on the MCX was up 6% at INR 376,200 per kilogram, after hitting a record high of INR 383,100 per kg earlier in the day. The most-active March contract on COMEX was up 6% at $112.58 per ounce.

Tensions between the US and Iran lingered, with Washington announcing plans to hold a multi-day military exercise in West Asia, deploying what US President Donald Trump called an "armada" led by the USS Abraham Lincoln to the region. On Wednesday, Trump said that another "armada" is moving towards Iran, while expressing hope that Tehran would agree to a deal with Washington. "By the way, there's another beautiful armada floating toward Iran right now. So we'll see. I hope they make a deal. I hope they make a deal," Trump said at a public event.

 

Adding to the geopolitical tension, Russia pounded Ukraine with drones and a missile overnight in the Kyiv region, Reuters reported. Ukraine's air force said Russia launched an Iskander-M ballistic missile and 146 drones overnight, with 103 of them neutralised by air defences.

 

Bullion prices also edged higher amid concerns over a potential partial US government shutdown starting Saturday, after the killing of a US citizen by federal agents in Minneapolis prompted Senate Democrats to seek changes to homeland security provisions in the proposed government funding bill.

 

The weakness in the dollar also boosted gold prices. The dollar index fell to near a four-year low Tuesday, analysts said. "Further downside is possible in dollar and will continue to support gold prices," Manoj Jain, director, Prithvi Finmart, said. On Tuesday, the dollar index fell to 95.55, its lowest level since Feb. 10, 2022. The dollar index tumbled after US President Donald Trump said on Tuesday that the dollar's value was "great" when asked whether he thought it had declined too much. Traders took his comments as a signal to sell the greenback aggressively. A weaker dollar makes dollar-denominated commodities, such as gold and silver, cheaper for holders of other currencies, aiding demand. Although the dollar has risen Wednesday, the market believes it could decline further soon.

 

"(Gold's ‍rise) is due to the very strong indirect correlation with the dollar and... Trump's remark to a casual question about the dollar, which implied that (there is) a broad-based consensus within the White House to have a weaker greenback going forward," Reuters quoted Kelvin Wong, a senior market analyst at OANDA, as saying.

 

Market participants' focus will now be on the Federal Reserve's policy decision at 0030 IST Thursday, with expectations that the Fed will keep rates unchanged, which could weigh on gold prices. "More focus will be on statements to get cues on future rate path. Moreover, concern over Fed independence and strong central bank buying would be supportive for the prices," ICICI Direct said in a report. "Trump also added that he will soon announce his pick to serve as head of the US central bank, and predicted interest rates would decline once the new chair takes over," SMC Global Securities said in a report.

 

Outlook for the rest of the session:

--MCX gold seen at INR 160,000–INR 168,000 per 10 grams

--COMEX gold seen at $5,200.0–$5,350.0 an ounce

--MCX silver seen at INR 365,000-INR 390,000 per kg

--COMEX silver seen at $111.00-$115.00 an ounce

End

 

US$1 = INR 91.78

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

 

Edited by Saji George Titus

 

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