Domestic MCX prices outperformed global markets
Kaynat Chainwala,
AVP Commodity Research,
Kotak Securities
Mumbai, 20 January 2026: Gold and silver extended their rally to fresh all-time highs today, with spot prices climbing to $4,725/oz and $95/oz respectively, as intensifying geopolitical tensions reinforced safe-haven demand. Domestic MCX prices outperformed global markets ahead of the February 1 Union Budget, with gold surging to a record ₹152,500 per 10 grams and silver nearing ₹328,000 per kg for the first time ever. The surge follows President Trump’s renewed push for the U.S. to acquire Greenland, accompanied by warnings of escalating tariffs on European allies, starting at 10% from February 1 and rising to 25% by June, prompting European officials to consider retaliatory measures. Spot prices are likely to remain volatile yet firm amid fears of a transatlantic trade conflict, Trump’s speech at the World Economic Forum in Davos tomorrow, and continued U.S. dollar weakness driven by policy uncertainty. Meanwhile, MCX prices may witness choppier trade ahead of the Union Budget.
WTI crude oil edged higher to $59.75/bbl today after China reported 5% GDP growth last year, in line with its official target, providing some support to prices following easing geopolitical tensions in Iran. However, the data does not signal a strong demand outlook, as China recorded progressively weaker year-on-year growth across all four quarters of 2025. Meanwhile, President Trump’s threat of escalating tariffs on European nations continues to weigh on market sentiment. Oil prices are expected to trade within a range as markets monitor potential supply developments from Venezuela and remain cautious ahead of the IEA’s first monthly oil market report of 2026, due tomorrow.
