The Indian bullion market is witnessing an unprecedented surge in precious metal prices as global economic uncertainty takes center stage. Driven by US President Donald Trump's recent tariff threats regarding Greenland, investors are flocking to gold and silver as safe-haven assets, while this shift has caused domestic prices to rally for the second consecutive day, with silver recording a staggering increase of over forty-five thousand rupees in less than ten days. The ripple effect of international trade tensions is now clearly visible in the retail markets of major Indian cities, leaving buyers and investors in a state of high alert. Experts suggest that as long as geopolitical instability persists, the upward trajectory of these metals is likely to continue.
The Trump Factor and Global Trade Tensions
At the heart of this price explosion is the escalating tension between the United States and several European nations. President Donald Trump has threatened to impose a 10 percent tariff starting February 1, 2026, on goods from Denmark, Norway, Sweden, France, Germany, the UK, Netherlands, and Finland. This move is a direct response to their opposition to American control over Greenland, while On top of that, Trump warned that if no agreement is reached by June, these tariffs could escalate to 25 percent. This potential trade war has spooked global markets, leading to a massive sell-off in equities and a. Corresponding rush into gold, which is traditionally viewed as a store of value during times of crisis.In the national capital, Delhi, gold prices have seen a significant jump. The price of 24-carat gold has reached ₹1,46,400 per ten grams, while 22-carat gold is trading at ₹1,34,210. Within just two days, the price of 24-carat gold has increased by ₹2,470 per ten grams. Similar trends are observed in Mumbai and Kolkata, where 24-carat gold is priced at ₹1,46,250, while chennai remains the most expensive city for gold buyers, with prices touching ₹1,46,740. Other major cities like Bengaluru, Hyderabad, and Lucknow are also witnessing high. Rates, reflecting the nationwide impact of global cues on the domestic jewelry market.
Silver’s Record-Breaking Performance
Silver has outperformed gold in terms of percentage growth over the last week, while in Delhi, silver is currently priced at ₹3,05,100 per kilogram. The metal has seen a cumulative rise of ₹45,100 over the past nine days, despite a brief dip of ₹3,000 during the period, while in Chennai, the situation is even more intense, with silver prices reaching a peak of ₹3,18,100 per kilogram. The dual demand from industrial sectors and retail investors looking for cheaper alternatives to gold has pushed silver to these historic levels. Market analysts believe that silver could see further appreciation if the industrial demand remains steady amidst supply chain disruptions.
Why Investors are Choosing Bullion
Financial experts point out that the current rally is purely sentiment-driven by geopolitical risks. When the US dollar faces potential volatility due to trade wars, gold becomes the preferred hedge for central banks and private investors alike, while the threat of inflation resulting from high tariffs also makes precious metals an attractive option. While some analysts warn that the market is currently in an 'overbought' zone, the lack of stability in other asset classes like cryptocurrencies or stocks keeps the focus on bullion. For retail consumers in India, the timing is particularly difficult. As the wedding season approaches, usually a period of high demand.
Future Market Predictions and Outlook
Looking ahead, the period leading up to 2026 is expected to be volatile for the global economy. If the European Union retaliates with its own set of tariffs against US goods, we could see a full-blown trade war that would further destabilize the global financial system. In such a scenario, gold prices could potentially breach even higher psychological barriers. Domestically, the Indian government's stance on import duties will also play a crucial role in determining final retail prices, while for now, the market remains on edge, closely watching every diplomatic move between Washington and Brussels, as any further escalation will likely send gold and silver prices to even more dizzying heights.
