Gold and silver prices surged to fresh record highs both globally and in India on Monday as investors flocked to safe-haven assets amid escalating global tensions and renewed tariff concerns.
The latest rally was sparked by fresh trade worries after US President Donald Trump threatened additional tariffs on European countries, triggering a risk-off mood across global markets. As uncertainty rose, demand for precious metals strengthened, with gold and silver emerging as preferred hedges.
India Gold and Silver RatesIn the domestic market, bullion prices extended their strong upward trend and hovered near all-time highs. According to India bullion rates, gold was priced at ₹1,45,030 per 10 grams, up ₹1,940 or 1.36% in a single session. Gold has been on a sustained rally in recent weeks, supported by global cues and safe-haven buying.
Silver posted sharper gains. Prices jumped to ₹2,99,390 per kg, rising ₹11,100 or 3.85%. Intraday, silver came close to breaching the ₹3 lakh per kg mark, reflecting strong bullish momentum.
Global Market MovementIn international markets, gold climbed sharply as risk appetite weakened. Spot gold rose 1.6% to USD 4,670.01 per ounce in early Asian trade, after touching an all-time high of USD 4,689.39. US gold futures for February delivery gained 1.8% to USD 4,677.
Silver outperformed gold, with spot prices surging 4.4% to USD 93.85 per ounce and hitting a record high of USD 94.08 earlier in the session. The strong move highlights silver’s growing appeal as both a safe-haven and an industrial metal.
The rally was reinforced by broader weakness in US stock futures and the dollar, while traditional safe-haven currencies such as the Japanese yen and Swiss franc strengthened.
Tariff Tensions and Rate OutlookTrade-related uncertainty remained the key driver behind the rush into precious metals. Over the weekend, Trump said he would impose higher tariffs on European allies until the US is allowed to buy Greenland, intensifying concerns over global trade and economic stability. European Union officials have since discussed steps to prevent the tariffs and are preparing countermeasures if needed.
Expectations of lower interest rates also supported gold. US Federal Reserve Vice Chair Michelle Bowman noted that the labour market remains fragile and said the central bank should be ready to cut rates again if required. Lower interest rates typically benefit gold, which offers no yield.
Concerns over China’s slowing economic growth further added to the cautious sentiment, as the world’s second-largest economy faces weak domestic demand and ongoing trade challenges.
ETF Flows and Physical DemandInvestment demand stayed strong, with holdings in SPDR Gold Trust rising 1.01% to 1,085.67 metric tonnes, indicating continued interest from large investors. However, physical demand in India remained subdued due to elevated prices, while demand in China stayed steady ahead of the Lunar New Year.
Among other metals, platinum rose 1.9% to USD 2,373.08 per ounce and palladium gained 0.5% to USD 1,809.
OutlookGold and silver prices are expected to remain firm as long as global uncertainty persists. Ongoing trade tensions, economic growth worries, and expectations of lower interest rates continue to provide a supportive backdrop for precious metals, even as high prices temper retail demand in key markets like India.
