Gold and silver prices in India surged to unprecedented levels on Wednesday, mirroring a sharp global rally as rising trade frictions between the United States and Europe pushed investors toward traditional safe-haven assets.
On the Multi Commodity Exchange, gold futures for February delivery broke decisively past the key ₹1.5 lakh mark, climbing nearly five percent to touch ₹1,58,339 per 10 grams. Silver continued to outperform, with March contracts jumping more than three percent to hit an intraday peak of ₹3,34,027 per kilogram.
The latest spike in bullion prices has been driven by renewed geopolitical uncertainty. Markets turned cautious after US President Donald Trump threatened to impose tariffs on European allies if they opposed Washington’s plan to take control of Greenland from Denmark. Investor anxiety was further amplified when the US Supreme Court postponed its decision on the legality of existing trade duties, keeping tariff risks firmly in play.
Kyle Rodda, senior market analyst at Capital.com, told Reuters that the sharp move in gold reflects growing fears over global geopolitical instability and a broader erosion of confidence in the United States.
Bullion rally in the domestic market
Back home, the momentum has been dramatic. Silver prices have risen by nearly ₹17,700 per kilogram in just two trading sessions, fuelled by a combination of strong industrial demand and escalating geopolitical stress.
The contrast with equity markets was clear on Wednesday. While the S&P BSE Sensex struggled to find direction, bullion focused exchange traded funds attracted strong inflows as investors sought protection from volatility.
International trends also supported the rally. Spot gold climbed to a record level above $4,800 an ounce, while silver hovered near $94.30 an ounce. A weaker US dollar added further strength, as the softer greenback made precious metals more appealing to global buyers, boosting demand in emerging markets such as India.
Wedding season faces price shock
For Indian consumers, however, these record prices could curb physical demand as the wedding season nears. Traders in Mumbai’s Zaveri Bazaar reported fewer walk ins, with many customers opting to exchange or recycle old jewellery instead of buying new pieces at current rates.
Crossing the ₹1.5 lakh per 10 gram threshold has strong psychological significance, a Mumbai based bullion dealer said. While retail buyers are stepping back, investment demand remains robust, driven by a strong fear of missing out as prices continue to race higher.
