Last Updated on January 12, 2026 5:11 pm by BIZNAMA NEWS
AMN / BIZ DESK
Gold and silver prices surged to historic highs on Monday as investors flocked to safe-haven assets amid escalating tensions between the US Justice Department and the Federal Reserve, along with intensifying protests in Iran that fuelled geopolitical uncertainty.
On the Multi Commodity Exchange (MCX), gold February futures climbed 1.46 per cent to ₹1,40,838 per 10 grams, while silver March futures jumped 3.66 per cent to ₹2,61,977 per kg.
In the global market, spot gold advanced 1.45 per cent to $4,575.82 an ounce after touching a record peak of $4,601.17. Silver prices surged 4.85 per cent to $83.19, having earlier scaled an all-time high of $83.88.
Market sentiment was rattled after US Federal Reserve Chair Jerome Powell revealed that the central bank had received grand jury subpoenas from the Justice Department related to his June congressional testimony on the renovation of the Fed’s headquarters. The development marked a sharp escalation in US President Donald Trump’s confrontation with the Federal Reserve, reviving concerns over the institution’s independence.
According to Rahul Kalantri, Vice President – Commodities at Mehta Equities Ltd, the rally in precious metals was driven by mounting geopolitical risks, growing political pressure on the US central bank and weaker-than-expected US employment data, all of which boosted safe-haven demand.
Adding to market unease, deadly protests in Iran heightened fears of political instability and potential disruptions to oil supplies. President Trump’s remarks on Sunday indicating that the US was considering options on Iran further amplified uncertainty, alongside multiple global geopolitical flashpoints.
Expectations of additional interest-rate cuts by the Federal Reserve also strengthened after last week’s US jobs data showed softer-than-anticipated payroll growth.
Gold gained more than 4 per cent last week, while silver rallied over 7 per cent. The ongoing Russia–Ukraine war, the US capture of Venezuela’s President Nicolas Maduro, and renewed signals from Washington about taking control of Greenland further supported the sharp rally in precious metals.
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