Gold prices scaled a fresh lifetime high in early trade on Tuesday, January 20, as mounting global trade tensions reignited demand for safe-haven assets. Weakness in the US dollar and growing geopolitical uncertainty provided strong support to bullion prices both in domestic and international markets.
On the Multi Commodity Exchange (MCX), gold February futures rose 0.50% to ₹1,46,326 per 10 grams around 9:10 am, marking a new all-time high. Silver prices also witnessed a sharp uptick, reflecting broader strength in precious metals.
Silver Prices Gain Alongside Gold
Silver mirrored gold’s momentum during morning trade. MCX silver March futures climbed 0.52% to ₹3,11,879 per kilogram, supported by safe-haven buying and firm global cues.
Market participants noted that heightened uncertainty in global trade relations continues to push investors towards bullion, traditionally viewed as a hedge against economic and political risks.
Global Gold Prices Rally to Record Levels
The rally was not limited to Indian markets. International gold prices also touched record highs amid escalating trade-war concerns.
US gold futures for February delivery surged nearly 2% to $4,681 per ounce, as investors reacted to fresh geopolitical signals and potential policy disruptions stemming from the United States.
Trade War Fears Fuel Safe-Haven Buying
Gold’s strong performance is being driven by rising fears of a major trade conflict between the United States and Europe. US President Donald Trump recently threatened to impose tariffs on eight European countries, prompting sharp retaliatory rhetoric from European leaders.
Adding to the uncertainty, Trump has reiterated his stance on Greenland, showing no indication of easing tensions. Analysts warn that any retaliatory measures by Europe could escalate into a full-blown trade war between two of the world’s largest economic blocs.
Currently, several major economies—including China, India, and European nations—are already facing US-imposed tariffs, further amplifying global economic concerns.
Expert View: Gold Likely to Stay Strong
Commenting on the rally, Aksha Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, said that sentiment remains firmly supportive for gold.
“Gold is surging to fresh record levels as escalating trade tensions between the US and Europe intensify safe-haven demand. Despite the sharp rally, the overall sentiment continues to favour higher prices,” Kamboj said.
She added that gold prices are expected to remain elevated as long as geopolitical uncertainties dominate global markets.
What Lies Ahead for Gold Prices?
Market experts believe that gold’s near-term outlook remains bullish, with volatility in global trade policy, currency movements, and geopolitical risks likely to keep investors cautious.
Any further escalation in trade disputes or weakness in the US dollar could provide additional upside to gold prices, while traders will also closely track central bank signals and global economic data for cues.