Gold Market Recap: Record Highs Fuelled by Global Tensions on 21 January 2026

Indian gold investors and jewelry shoppers woke up to a significant surge in prices on January 21, 2026, as MCX gold soared to an unprecedented ₹1.58 lakh per 10 grams. This remarkable rally wasn't confined to domestic markets, with global spot prices also crossing the $4,800 mark. The sharp upward movement was largely attributed to escalating global tensions and persistent geopolitical uncertainty, making gold a preferred safe-haven asset.

On the Multi Commodity Exchange (MCX), gold witnessed a substantial jump of ₹7,910 per 10 grams, pushing prices well past the ₹1.5 lakh psychological barrier. Silver, often moving in tandem with gold, also experienced a significant upward thrust, with MCX prices reaching ₹325,000 per kilogram. Despite some reports of an intra-day dip for silver, the overall sentiment remained bullish, with headlines indicating silver hitting new highs and jumping ₹11,850 per kilogram. This robust performance across both precious metals suggests strong underlying demand and investor confidence. A notable trend observed was the trading of gold and silver at abnormal premiums on both MCX and Exchange Traded Funds (ETFs). This phenomenon is largely linked to growing speculation surrounding a potential hike in import duties during the upcoming Union Budget, prompting market participants to factor in higher future costs.

The primary catalyst for today's price surge appears to be a heightened sense of global instability. Reports cited 'global tensions' and 'geopolitical uncertainty,' specifically mentioning 'Greenland concerns,' as key factors driving investors towards safe-haven assets like gold. In times of economic or political turbulence, gold traditionally serves as a reliable store of value, and the current environment strongly reinforces this historical role. The rising premiums also highlight a domestic factor, with traders anticipating policy changes that could impact supply and pricing.

Looking ahead, the outlook for gold and silver remains largely positive. Experts from ICICI Direct and The Economic Times, citing GlobalData forecasts, predict that prices for both precious metals are set to rise sharply by the end of 2026. Discussions around whether gold will remain 'inflation-proof' in 2026 suggest continued investor interest in its hedging capabilities. For Indian investors and jewelry shoppers, the current environment indicates that gold may continue its upward trajectory, making it crucial to stay informed about global events and domestic policy announcements. While the market shows strength, potential buyers should monitor price fluctuations and consider their long-term investment goals.