Gold prices near ₹1.60 lakh per 10 gm; silver hits new lifetime high of ₹3.34 lakh per kg; here’s why 

Gold prices on Wednesday, January 21, skyrocketed to a new lifetime high, nearing the ₹1.6 lakh per 10 gram mark in Delhi on the back of high safe-haven demand in both domestic and international markets. 

The yellow metal (24K, 99.9% purity) surged by 4.24% (₹6,500) to a new all-time high of ₹1,59,700 per 10 gram, according to the All India Sarafa Association. On Tuesday, gold surpassed the crucial ₹1.5 lakh per 10 gram milestone in Delhi for the first time. 

Meanwhile, silver prices also surged to a fresh peak, increasing by as much as ₹11,300 to a new high of ₹3,34,300 per kg on Wednesday, rising for the ninth consecutive session in the local bullion market.

On Tuesday, the white metal had gained ₹20,400 per kg. In the last three sessions, silver prices have advanced by ₹41,700 from Friday’s closing price of ₹2,92,600 per kg. 

Compared to ₹2,39,000 per kg on January 1, silver is currently up 39.87%. On the other hand, gold has risen by 15.9% since the start of 2026.

Gold and silver have been witnessing strong safe-haven demand consistently due to rising geopolitical tensions. Strong inflows into gold and silver ETFs have also been pushing the precious metals.  

Supply-demand gaps, heightened investment demand, falling stock markets and weak currencies have together been driving bullion to new highs in every other session.

Gold, silver futures

In domestic futures trade, gold contracts for February delivery rose by over 5% to a new record high of ₹1,58,475 per 10 gram on the Multi Commodity Exchange, up from Tuesday’s closing price of ₹1,50,565 per 10 gram. 

Silver futures for the March expiry also soared to a fresh peak, rising by 3.6% to ₹3,35,521 per kg on the MCX, after closing at ₹3,23,672 per kg on Tuesday. 

International markets

According to trading platform FOREX.com, gold surpassed the $4,800-per-ounce level for the first time in the international markets, with spot prices rising by $124.97, or 2.62%, to $4,888.46 per ounce, a PTI report said. Spot silver was trading 0.33% up at $94.91 per ounce on Wednesday after touching a lifetime high of $95.89 per ounce on Tuesday.  

Spot gold rose over 2% in the global markets as escalating tensions between the US and EU over Greenland, and surging global yields on fiscal and inflation concerns are acting as a solid tailwind, the PTI report quoted Praveen Singh, Research Analyst, Mirae Asset Sharekhan, as saying. 

Analysts said the rally in bullion prices is driven by ongoing geopolitical rifts and economic headwinds, which are fuelling the demand for safe-haven assets, it added. 

"Investors are closely watching Europe's response to the tariff threat against eight nations opposing the move, as well as developments from Davos, where Trump is expected to discuss the issue with global leaders," the report quoted Renisha Chainani, Head - Research at Augmont, as saying.

She said these developments point to a rising wave of "resource nationalism" among major powers, with the US stance toward its NATO allies unsettling global markets.

"Against this backdrop of rising geopolitical risk and macro uncertainty, gold demand has strengthened sharply, with prices potentially extending their rally toward USD 5,000 per ounce as risk-off sentiment persists," Chainani added.