Patna: Gold and silver prices climbed to fresh record levels on January 20, extending a sharp rally in the bullion market as investors responded to global uncertainty, currency weakness and rising industrial demand.
According to the India Bullion and Jewellers Association (IBJA), gold prices rose by Rs 2,429 to Rs 1,46,375 per 10 grams, compared with Rs 1,43,946 a day earlier. Gold has gained Rs 13,180 so far this year, reflecting sustained buying interest from investors and central banks.
Silver recorded an even steeper rise. In the physical bullion market, prices jumped by Rs 10,888 to Rs 3,04,863 per kg, crossing the Rs 3 lakh mark for the first time. On the Multi Commodity Exchange of India (MCX), silver had already breached the Rs 3 lakh level a day earlier. Since the beginning of the year, silver has become costlier by Rs 74,443 in just 20 days.
Market participants attribute the surge in silver prices primarily to strong industrial demand. Silver is increasingly used in solar panels, electronics and electric vehicles, transforming it from a traditional jewellery metal into a critical industrial raw material. Analysts say consumption is rising faster than mine supply, tightening the global market.
Concerns over potential trade disruptions have also added momentum. Fears of higher tariffs under a possible return of Donald Trump to the White House have prompted US companies to build large inventories of silver, contributing to shortages and pushing prices higher. Manufacturers across sectors are reportedly buying in advance to hedge against supply risks, reinforcing expectations that prices could remain elevated in the coming months.
Gold’s rally, meanwhile, has been driven by a combination of macroeconomic and geopolitical factors. A weaker US dollar, following interest rate cuts, has reduced the opportunity cost of holding gold, encouraging fresh inflows. At the same time, ongoing conflicts such as the Russia–Ukraine war and broader global tensions have strengthened gold’s appeal as a safe-haven asset.
Central bank buying has also played a decisive role. Countries including China have been aggressively adding gold to their reserves, purchasing more than 900 tonnes over the past year, according to market estimates. This sustained official-sector demand has tightened supplies and supported higher prices.
Analysts caution that while volatility is likely, the underlying drivers for both metals remain strong, suggesting that the rally could persist if global uncertainty and industrial demand continue at current levels.
