Gold and Silver prices surge amid global volatility. What investors should know

The rally in gold and silver shows no signs of cooling even as 2026 unfolds, with both precious metals scaling fresh record highs on Monday amid heightened macroeconomic uncertainty, rising geopolitical risks, and growing expectations of US Federal Reserve rate cuts. 

In the international spot market, gold surged 1.6% to cross the $4,600-per-ounce mark for the first time, while silver jumped 5.45% to hit a lifetime high of $84 per ounce. The sharp gains reflect renewed investor demand for safe-haven assets as global risks intensify. 

On the domestic front, bullion prices mirrored global trends, hitting record levels in early trade on the Multi Commodity Exchange (MCX). MCX gold February futures rallied over ₹2,400, or 1.8%, to touch a fresh peak of ₹1,41,250 per 10 gm. Meanwhile, MCX silver March futures surged more than 4% to scale an all-time high of ₹2,63,996 per kilogram. 

International gold prices were further supported by weakness in the US dollar. US gold futures for February delivery climbed to $4,612.40 per ounce, as the dollar index slipped around 0.20%. The greenback weakened after reports that US prosecutors had opened a criminal investigation into Federal Reserve Chair Jerome Powell. As reported by Reuters, Powell has said the Trump administration threatened him with criminal indictment, adding to market unease. 

Why are gold and silver prices rising today?

Geopolitical tensions have also intensified safe-haven demand. Investors remain on edge over developments in Latin America and the Middle East, with the recent US-Venezuela standoff, former President Donald Trump’s aggressive stance over Greenland, ongoing protests in Iran, and renewed concerns over US tariffs all contributing to elevated global risk sentiment. 

Beyond geopolitics, expectations of monetary easing by the US Federal Reserve continue to underpin gold prices. Data released on January 9 showed US employment growth slowed more than expected in December, strengthening the case for policy easing. Markets are now pricing in at least two Fed rate cuts in 2026, with upcoming US inflation data expected to offer further clarity on the central bank’s policy path. 

Silver, meanwhile, is benefiting not only from safe-haven flows but also from strong industrial demand. Growing usage in sectors such as solar energy, electric vehicles, artificial intelligence, and electronics has reinforced its appeal, positioning silver as a high-beta performer within the precious metals complex. 

Should I invest in gold and silver?

Despite the strong rally, market participants caution that intermittent profit booking is likely, given prices are at record highs. Experts advise traders and investors to wait for corrective dips before initiating fresh long positions. 

Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said MCX gold is expected to remain volatile in the near term. “MCX gold is likely to trade in a range of ₹1,36,500 to ₹1,39,000 as global cues and upcoming US macro data continue to guide sentiment,” he said. 

Ponmudi R, CEO of Enrich Money, noted that COMEX gold has entered a healthy consolidation phase after marking a lifetime high of $4,612.70. “The prior resistance band of $4,500-$4,550 has now turned into strong support, reinforcing the broader uptrend. A sustained breakout above $4,600 could accelerate gains toward $4,700-$4,800,” he said. 

On the domestic front, Ponmudi highlighted that MCX gold remains firmly bullish, with the 20-day EMA near ₹1,38,000 acting as strong support. “A sustained move above ₹1,42,000 could open targets of ₹1,45,000-₹1,48,000. The preferred buy-on-dips zone remains ₹1,38,000-₹1,39,000,” he added. 

For silver, Ponmudi said momentum remains decisively buyer-driven. “COMEX silver is trading near $83 after a lifetime high, supported by rising industrial demand and safe-haven flows. A breakout above $85 could push prices toward $90-$95,” he said, adding that MCX silver could target ₹2,80,000-₹3,00,000 if prices sustain above ₹2,70,000.

Kalantri, VP – Commodities at Mehta Equities Ltd, said gold and silver surged to fresh record highs during Asian trade on Monday, driven by rising geopolitical risks, growing political pressure on the US Federal Reserve, and weaker-than-expected US employment data that boosted safe-haven demand. Gold climbed over 4% last week, while silver rallied more than 7% amid heightened global uncertainty.

However, Kalantri cautioned that while policymakers are expected to maintain current interest rates in the near term, a recent surge in the dollar index could limit further upside in bullion prices. From a technical perspective, gold has key support in the $4,465-$4,415 range, while resistance is seen at $4,555-$4,580. Silver is supported at $78.10–$76.75, with resistance placed at $81.85-$82.70.

In the domestic market, gold prices have support at ₹1,34,550-₹1,32,310, while resistance lies in the ₹1,41,350-₹1,43,670 range. Silver, meanwhile, finds support at ₹2,48,810-₹2,44,170 and faces resistance at ₹2,55,810-₹2,59,470.