Gold and silver futures jumped to a new lifetime high on Tuesday, buoyed by safe haven demand amid ongoing geopolitical tensions. On the Multi-Commodity Exchange (MCX) gold for February 5 delivery soared Rs 2,522 or 1.62%, to trade at Rs 1,58,559 per 10 grams, climbing Rs 2,522 or 1.62%, after briefly touching a record Rs 1,59,820 in early trading. The rally came on the back of global gains, following gold’s break above the $5,100-per-ounce mark in international markets. Silver futures for March 5 delivery jumped Rs 19,831, or 5.93%, to Rs 3,54,530 per kg, after hitting a fresh peak of Rs 3,54,780. The domestic price increase mirrored international trends, where spot silver rose over 6% to $117.69 an ounce.The yellow metal continued its upward momentum globallyly, extending gains from the previous session. As of 0121 GMT, spot gold was at $5,068.05 per ounce, up 1.1% from Monday’s all-time high of $5,110.50, while US gold futures for February delivery gained 0.4% to $5,063.00 per ounce. Spot silver climbed 6.3% to $110.39 per ounce, after touching a record $117.69, posting a 55% gain so far in 2026. Geopolitical developments have contributed to market volatility. Earlier on Tuesday, US President Donald Trump announced plans for a 25% tariff on South Korean automobiles, lumber, and pharmaceuticals, citing a stalled trade deal. This followed tensions with Canada after Prime Minister Mark Carney’s visit to China, which reportedly cooled ties between Ottawa and Washington. Currency movements also influenced precious metals. The US Dollar Index fell to 96.92, a four-month low, down 0.12 points, amid a rebound in the Japanese yen, making gold cheaper for foreign buyers. Manoj Kumar Jain of Prithvifinmart Commodity Research told ET that the prices of precious metals have been supported by robust safe haven demand. He further added that gains were driven by global uncertainty, positive US consumer confidence data, and ongoing dollar weakness. Commenting on price swings, Jain noted, “We are experiencing very high price volatility in both precious metals. Silver prices could hold support near $98 per troy ounce, and gold may remain firm above $4,840 per troy ounce on a closing basis this week.”
