Gold and silver prices surged to unprecedented levels on Tuesday, January 20, as renewed trade tensions between the United States and Europe sent investors scrambling for safety. Precious metals extended their rally from the previous session after US President Donald Trump warned of possible tariffs against European nations in connection with his controversial Greenland push, reviving fears of a broader trade conflict.
Heightened geopolitical uncertainty and concerns over retaliatory measures boosted demand for traditional safe-haven assets, helping both gold and silver touch fresh record highs across domestic and global markets.
MCX Futures Extend Sharp Rally
On the Multi Commodity Exchange (MCX), gold futures expiring on February 5, 2026, jumped Rs 1,300, or nearly 1 per cent, to trade at Rs 1,46,988 per 10 grams. Silver futures for March 5, 2026, delivery posted an even stronger move, climbing Rs 7,869, or 2.5 per cent, to Rs 3,19,949 per kg.
The rally reflected strong buying interest as traders priced in elevated risk from escalating US-Europe tensions and volatility across global asset classes.
Global Markets React To Trade War Fears
In international trade, COMEX silver prices surged to a new all-time high of $94.74 per troy ounce. Gold, meanwhile, hovered close to record territory around $4,670 per troy ounce. Market sentiment was rattled after Trump proposed tariffs on eight European countries opposing his Greenland-related move, fuelling concerns of a renewed transatlantic trade war.
However, after Monday’s sharp rally, both metals trimmed some intraday gains as investors booked profits at elevated levels.
Expert View: Key Supports and Resistance Levels
Despite near-term volatility, analysts remain constructive on precious metals. “Precious metals are witnessing elevated price volatility, though silver is expected to hold its key support near $84 per troy ounce, while gold is likely to sustain support around $4,440 per troy ounce on a closing basis,” says Manoj Kumar Jain of Prithvi Finmart, according to a report from The Economic Times.
He added that fluctuations in the dollar index, the upcoming US Supreme Court decision on Trump-era tariffs, and ongoing geopolitical risks could keep prices volatile through the week.
In global markets, gold has support in the $4,635 to $4,610 range, with resistance seen between $4,700 and $4,740 per troy ounce. Silver is supported between $91.40 and $88, while resistance is placed at $96.60 to $98.80 per troy ounce.
MCX Levels And Trading Strategy
On the MCX, gold finds support between Rs 1,44,800 and Rs 1,44,100, with resistance at Rs 1,46,350 to Rs 1,47,000. Silver support lies in the Rs 3,03,000 to Rs 2,96,600 zone, while resistance is seen from Rs 3,14,000 to Rs 3,22,000.
The preferred strategy remains to buy gold and silver on dips, targeting Rs 1,48,000 for gold and Rs 3,22,000 for silver, with stop losses placed below Rs 1,44,000 and Rs 2,98,000, respectively.
Gold Rates In Key Indian Cities
In physical markets, gold prices remained elevated across major cities. In Delhi, 22-carat gold was priced at Rs 1,07,368 per 8 grams, while 24-carat gold stood at Rs 1,17,120. Mumbai saw 22-carat gold at Rs 1,07,248 and 24-carat gold at Rs 1,17,000 per 8 grams. Chennai recorded slightly higher rates, while Hyderabad matched Mumbai levels.
