Mumbai: As trade tensions between Washington and Europe escalate over the Greenland acquisition row, investors are fleeing to safe-haven assets, driving domestic precious metal prices to uncharted territories.
Indian bullion markets witnessed a historic session on Monday as Silver prices breached the psychological ₹3 lakh per kg mark for the first time, while Gold futures scaled a fresh all-time high. The explosive rally comes in response to renewed geopolitical volatility after US President Donald Trump announced imminent tariffs on European nations.
The Geopolitical Trigger
The surge in precious metals was triggered by President Trump’s announcement on Sunday regarding a punitive tariff regime targeting eight European countries. The US administration plans to levy a 10% tariff on goods from nations—including France, Germany, the United Kingdom, and several Nordic states—that have opposed the United States’ proposal to acquire Greenland.
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According to the statement, these tariffs will come into effect on February 1, with a provision to escalate the rate to 25% by June if no diplomatic resolution is reached. This ultimatum has rattled global sentiment, prompting a sharp rotation of capital into safe-haven assets like gold and silver.
Market Reaction: MCX and Global Surge
On the Multi Commodity Exchange (MCX), bullion counters opened with significant gaps.
- Gold: The February contract rose 1.33% to trade at a record ₹1,44,411 per 10 grams by 9:20 am.
- Silver: The white metal outperformed, with the March contract surging 3.72% to trade at ₹2,98,480 per kg, having briefly crossed the ₹3 lakh milestone earlier in the session.
International markets mirrored this bullish trend. Spot gold in the US jumped 1.5% (+$71) to quote at $4,667 an ounce, while silver rallied 5.2% to $93.1 per ounce.
Analysts note that the tariff threat compounds an already supportive environment for bullion, characterized by ongoing geopolitical instability in Iran, a softening US dollar, and heightened expectations of further rate cuts by the Federal Reserve.
Spot Market Update
Domestic spot markets reacted sharply to the futures rally. By 10:30 am, physical silver demand pushed local rates to ₹301,020 per kg, a 4.4% increase. Gold rates in major metros also adjusted upwards, with 24K gold hovering near the ₹1.45 lakh mark.
Gold Price Today in Major Cities (Per 10gm)
| City | 24K Gold | 22K Gold |
|---|---|---|
| Mumbai | ₹145,260 | ₹133,155 |
| Delhi | ₹145,080 | ₹132,990 |
| Chennai | ₹145,750 | ₹133,604 |
| Kolkata | ₹145,070 | ₹132,981 |
| Ahmedabad | ₹145,496 | ₹133,376 |
Silver Price Today in India (Per Kg)
(As of 10:30 am)
| City | Silver Price |
|---|---|
| Mumbai | ₹300,470 |
| Delhi | ₹299,890 |
| Chennai | ₹301,290 |
| Kolkata | ₹300,080 |
Disclaimer: The gold and silver rates mentioned in this article are for informational purposes only and are based on market data available at the time of writing. Prices are subject to fluctuation based on market dynamics, local taxes, and making charges. Readers are advised to consult with their financial advisors before making any investment decisions.
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