29 January 2026 Punjab Khabarnama Bureau : Precious metals witnessed a historic surge as silver crossed the ₹4 lakh mark per kilogram while gold jumped to an all-time high of ₹1.75 lakh per 10 grams in domestic markets. The sharp rally has grabbed the attention of investors, jewellers, and policymakers alike, reflecting heightened global uncertainty, strong safe-haven demand, and persistent inflationary concerns.
Market experts attribute the unprecedented rise in gold and silver prices to a combination of global and domestic factors. One of the key drivers has been increased safe-haven buying amid geopolitical tensions and economic uncertainty across major economies. When financial markets turn volatile, investors traditionally shift towards precious metals, especially gold and silver, which are considered stores of value during turbulent times.
Another major factor supporting the rally is the weakening of the Indian rupee against the U.S. dollar. Since gold and silver are largely imported, a depreciating rupee makes these metals more expensive in domestic markets. The recent fall of the rupee to record lows has significantly pushed up local prices, even as global bullion prices remained firm.
Global monetary policy trends have also played a crucial role. Expectations of prolonged high interest rates in advanced economies, along with concerns over slowing global growth, have fueled demand for non-yielding assets like gold. Central banks across the world have continued to add gold to their reserves, further strengthening prices. This sustained institutional demand has provided a strong base for the current rally.
Silver’s surge beyond ₹4 lakh per kilogram has been particularly notable. Apart from its role as a precious metal, silver has strong industrial demand, especially in sectors such as electronics, renewable energy, and electric vehicles. The global push toward clean energy has increased silver consumption, tightening supply-demand dynamics and pushing prices higher. Analysts believe that constrained supply from major producing regions has further amplified the price rise.
In India, strong festive and wedding season demand has added to upward pressure on gold prices. Despite high prices, consumer interest remains steady, as gold continues to hold cultural and financial significance. Many buyers view gold not just as jewellery, but as a long-term investment and a hedge against inflation and currency depreciation.
However, the sharp rise in prices has created challenges for jewellers and small retailers. High gold rates have led to reduced footfall in physical markets, with customers opting for lighter jewellery or postponing purchases. Some consumers are also shifting towards digital gold, gold exchange-traded funds (ETFs), and sovereign gold bonds as alternative investment options.
From an investment perspective, the rally has delivered strong returns to those holding gold and silver. Financial advisors suggest that while precious metals remain an important part of a diversified portfolio, investors should be cautious about chasing prices at record highs. Volatility is expected to remain elevated, and any easing of global tensions or strengthening of the rupee could trigger corrections.
The surge in precious metal prices also has broader economic implications. Higher gold imports can widen India’s trade deficit, putting additional pressure on the current account. Policymakers closely monitor gold demand, as excessive imports can impact foreign exchange reserves and macroeconomic stability.
Looking ahead, analysts remain cautiously optimistic on the outlook for gold and silver. Continued geopolitical risks, central bank buying, and inflation concerns are likely to keep prices supported in the medium term. However, much will depend on global economic data, interest rate trajectories, and currency movements. Any major shift in these factors could influence the direction of precious metal prices.
The record-breaking rise of silver beyond ₹4 lakh and gold touching ₹1.75 lakh per 10 grams underscores the growing preference for safe-haven assets in uncertain times. As markets navigate a complex global environment, precious metals are once again proving their role as a reliable hedge and a key component of investor portfolios.
Summary:
Silver crossed ₹4 lakh per kilogram and gold hit a record ₹1.75 lakh per 10 grams, driven by global uncertainty, weak rupee, strong safe-haven demand, and rising industrial and investment interest.