Gold Market Recap: Safe-Haven Demand Drives Prices Up on 18 January 2026

Indian gold markets witnessed a strong upward trend on January 18, with prices surging significantly and even hitting record highs in cities like Ahmedabad. The precious metal continued its robust performance, driven primarily by escalating global uncertainties and strong safe-haven demand from investors worldwide. This upward momentum reinforces gold's traditional role as a reliable asset during volatile times.

Nationally, 24K gold saw a substantial jump of ₹3,320 in just a week, reflecting the heightened investor interest. While Ahmedabad recorded a new peak, gold rates in Vijayawada remained stable, and other major cities like Delhi, Mumbai, Chennai, and Kolkata saw their rates being actively checked by consumers and traders. This indicates a mixed but generally upward momentum across the country. In contrast, silver, which had previously seen record highs, is now expected to cool down and may undergo a correction, suggesting a divergence in short-term trends between the two precious metals.

Several factors contributed to gold's bullish run. Growing hopes for a US Federal Reserve rate cut have made non-yielding gold more attractive to investors. Simultaneously, pervasive global uncertainty continues to push investors towards the traditional safe haven asset. This demand is not just from individual investors; major players like Central Banks, along with strong buying from countries like China and India, are significant drivers behind the worldwide surge in gold prices. Geopolitical events, such as potential implications from Trump's Greenland tariffs on NATO countries, are also adding to market jitters, further bolstering gold's appeal. Domestically, potential gold buyers should be aware of a recurring issue where they might face higher taxes than initially anticipated, a crucial point for those planning purchases.

Looking ahead, the outlook for gold remains firm, with analysts expecting prices to climb further next week, buoyed by the sustained safe-haven buying and the growing anticipation of rate cuts. For Indian investors and jewelry shoppers, this trend suggests that gold continues to be a strong asset, especially amidst market volatility. While specific city rates should be monitored closely before making a purchase, the overarching sentiment points towards continued strength for the yellow metal, solidifying its role as a crucial portfolio diversifier and a symbol of wealth.