Patna: Gold and silver prices scaled new record highs on Tuesday, extending a sharp rally for a third consecutive session as investors piled into safe-haven assets amid global uncertainty and a weakening rupee.
According to the India Bullion and Jewellers Association, gold opened at Rs 1,55,204 per 10 grams on January 21, up Rs 7,795 from the previous close of Rs 1,47,409. The precious metal has gained Rs 21,744 so far this year.
Silver also surged, with prices rising Rs 10,730 to Rs 3,20,075 per kilogram, compared with Rs 3,09,345 a day earlier. In just 21 days of 2026, silver prices have climbed Rs 90,825, reflecting strong demand and tightening supplies.
Market analysts pointed to three main factors behind gold’s rise. Heightened geopolitical tensions, including renewed trade-war fears triggered by comments from Donald Trump on tariffs and territorial issues, have unsettled global markets, prompting investors to shift funds from equities to gold.
Currency weakness has further amplified the rally. The rupee slipped to a record low of Rs 91.10 against the dollar on Tuesday, sharply increasing the domestic cost of imported gold. Analysts said the falling rupee had pushed local gold prices well beyond the Rs 1.5 lakh mark.
A third driver has been sustained buying by central banks. Data from the World Gold Council show that central banks, including the Reserve Bank of India, continued to add to their gold reserves after record purchases in 2025, tightening supply and supporting higher prices.
Silver’s rally has been underpinned by a different but overlapping set of forces. Strong industrial demand, particularly from the solar, electronics and electric vehicle sectors, has turned silver into a critical raw material rather than just a jewellery metal. At the same time, fears of tariffs have led US companies to stockpile silver, creating shortages in global markets. Manufacturers, wary of supply disruptions, are also buying aggressively in advance, reinforcing the upward momentum.
Analysts said volatility was likely to persist in the coming weeks, with precious metals remaining sensitive to global economic signals, currency movements and geopolitical developments.
