Silver Futures Jump to Record Levels on MCX
Silver prices surged sharply in the futures market on Tuesday, scaling a fresh lifetime high amid heightened demand for safe haven assets. On the Multi Commodity Exchange, silver contracts for March delivery rallied by Rs 25,101, marking a gain of 7.5 per cent, to touch an all-time peak of Rs 3,59,800 per kilogram.The white metal has seen an exceptionally strong run in recent sessions. Over the past week, silver prices climbed by Rs 46,937, or 16.3 per cent, crossing the Rs 3 lakh per kilogram milestone for the first time in the domestic futures market.
Gold Futures Extend Record-Breaking Rally
Gold prices also continued their upward momentum, registering fresh lifetime highs in futures trade. The February gold contract advanced by Rs 3,783, or 2.42 per cent, to reach Rs 1,59,820 per 10 grams. Over the last week alone, gold prices have risen by Rs 13,520, reflecting a gain of 9.5 per cent.The sustained rally in bullion prices highlights strong investor appetite for precious metals amid ongoing geopolitical and economic uncertainties across global markets.
Global Factors Drive Safe Haven Buying
The sharp rise in gold and silver prices is being driven by increased safe haven demand as investors reassess risk exposure. Elevated geopolitical tensions and renewed trade-related concerns have weighed on global market sentiment, encouraging a shift toward assets perceived as stores of value.Concerns around fiscal discipline, policy stability, and currency credibility in major economies have also contributed to the move away from bonds and fiat currencies, supporting demand for precious metals such as gold and silver.
Focus Turns to Union Budget 2026
Market participants are now turning their attention to the upcoming Union Budget 2026, scheduled to be presented on February 1 by Nirmala Sitharaman. Expectations around possible changes in import duties and fiscal measures could influence domestic bullion prices in the near term.Domestic commodity markets had remained closed on Monday in observance of the 77th Republic Day.
International Markets See Profit Booking
In overseas trade, silver prices witnessed profit booking after recent sharp gains. On the Comex, March silver futures declined by USD 7.2, or 6.27 per cent, to USD 108.26 per ounce. In the previous session, silver had touched a record high of USD 117.26 per ounce, after breaching the USD 100 per ounce mark for the first time last week.Gold prices also eased marginally in international markets. February gold futures slipped USD 26.25, or 0.51 per cent, to USD 5,096.05 per ounce, after hitting a fresh record of USD 5,107.9 per ounce in the previous session. Last week, gold crossed the key USD 5,000 per ounce level in overseas trade for the first time.
US Policy Uncertainty Adds to Market Volatility
Investors are also closely tracking policy developments in the United States, including the upcoming interest rate decision by the US Federal Reserve. Uncertainty surrounding monetary policy direction and broader political developments, including trade measures proposed by Donald Trump, continue to shape global risk sentiment.The combination of geopolitical risks, fiscal concerns, and policy uncertainty has reinforced the appeal of gold and silver as preferred defensive assets, pushing prices to historic highs in the domestic market.
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