Gold and silver prices surged to unprecedented record highs on Monday, fueled by a rush of safe-haven buying after U.S. President Donald Trump reignited a geopolitical dispute by threatening tariffs on European allies over Greenland. The escalation sent investors scrambling for traditional stores of value.
Greenland Dispute Fueled Gold, Silver Rush
The immediate catalyst was a statement from President Donald Trump on Saturday, threatening several European allies with escalating tariffs unless the U.S. is allowed to purchase Greenland from Denmark. This reignition of a longstanding geopolitical dispute created immediate market anxiety over a potential transatlantic trade conflict. Investors responded by moving capital into perceived safe-haven assets, principally gold and silver, driving their prices to all-time peaks.
What Are the New Record Prices?
By Monday, spot gold had jumped 1.7% to $4,672.49 per ounce, after scaling a intraday record peak of $4,689.39. U.S. gold futures followed closely, advancing 1.8% to $4,677.70. After reaching a record high of $94.61, silver saw an even more spectacular increase, with spot prices rising 5% to $94.41 per ounce. Other precious metals saw increases as well, including palladium and platinum.
How Does This Affect Prices in India?
Indian markets, where gold and silver prices in rupees follow global rates, are directly and strongly affected by the global surge. As of today, gold in Delhi is priced at around ₹148,335 for 10 grams of 24-carat gold, while silver costs about ₹305,000 per kilogram. On the Multi Commodity Exchange (MCX), silver futures touched ₹300,400 per kg, and gold futures recently hit a high of ₹144,905 per 10 grams.
Why Are Broader Economic Conditions Supporting Metals?
The socioeconomic climate is still quite conducive to precious metals, even after the immediate geopolitical trigger. Federal Reserve Vice Chair Michelle Bowman recently emphasized the U.S. central bank’s readiness to cut interest rates again if the job market weakens. Markets are currently pricing in at least two rate cuts this year. Gold, which pays no interest, becomes more attractive when rates are low or falling. A strong tailwind is being created by the confluence of global tension and a dovish monetary policy stance.
What is the Market Outlook Now?
Analysts at Citi Research have set bullish three-month price targets of $5,000 an ounce for gold and $100 an ounce for silver, citing expectations that geopolitical tensions will remain evated. Since the proposed U.S. tariffs are scheduled to go into force on February 1, 2026, there will probably be uncertainty in the near future, which could support the precious metals markets’ sustained rise.Â
