MUMBAI – In a historic surge that has sent shockwaves through the bullion market, gold prices in India touched an all-time high of ₹1,80,501 per 10 grams on the Multi Commodity Exchange (MCX) on Thursday, January 29, 2026. The 24-carat yellow metal rallied over 7.5% in a single session, driven by a perfect storm of a collapsing U.S. dollar, intensifying geopolitical friction in the Middle East, and a diplomatic standoff over Greenland that has rattled global trade sentiment.
The Trigger: “Sell America” Sentiment and Geopolitical Shocks
The primary catalyst for Thursday’s explosive rally is a sharp rotation of capital away from U.S. assets. The U.S. Dollar Index plummeted to a four-year low, as investors grew increasingly wary of Federal Reserve policy independence and the risk of a U.S. government shutdown.
Adding fuel to the fire, geopolitical tensions reached a boiling point:
- The Greenland Standoff: Renewed pressure from Washington regarding the acquisition of Greenland has escalated into a diplomatic confrontation with Europe. U.S. threats of steep tariffs on European nations have revived fears of a disruptive transatlantic trade war.
- West Asia Turmoil: Markets are on edge following U.S. military posturing in the Gulf and stern warnings to Iran, prompting a massive wave of safe-haven buying.
- Federal Reserve Stance: As the Fed holds interest rates steady amid economic uncertainty, the opportunity cost of holding non-yielding bullion has dropped significantly, making gold the preferred refuge for institutional investors.
Domestic Impact: Rupee Hits Record Low
For Indian buyers, the global rally is amplified by a rapidly depreciating currency. The Indian Rupee hit a record low of ₹91.57 against the dollar this week. Since gold is a dollar-denominated asset, the currency weakness has made imports exorbitantly expensive.
Data shows that while retail jewelry demand has softened due to the sticker shock, investment demand in India has surged. Inflows into Gold ETFs jumped by over 280% compared to the previous year, as households pivot from physical ornaments to digital gold and coins to protect their wealth against inflation.
Silver Joins the Mania
The “white metal” outperformed even gold, with silver futures on the MCX breaching the ₹4 lakh per kilogram milestone for the first time in history. Industrial demand for silver—driven by the AI hardware boom and solar energy expansion—coupled with preemptive stockpiling by manufacturers fearing future supply chain tariffs, has led to a structural supply squeeze.
Market Outlook: What Lies Ahead
Analysts at major brokerages, including Goldman Sachs and Kotak Securities, have revised their end-2026 targets upward.
- Immediate Resistance: MCX Gold faces technical resistance at the ₹1,82,000 level.
- Support Levels: Experts suggest a strong floor has formed at ₹1,65,000, and any dips should be viewed as accumulation opportunities.
- Budget Watch: All eyes are now on the Union Budget on February 1, where the industry expects a possible hike in gold import duties to curb the widening trade deficit.
“We are seeing a fundamental rebasing of gold prices,” noted a senior commodity strategist. “This isn’t just a spike; it’s a reflection of a world where traditional currencies are losing their luster as a store of value.”