Why are Gold and Silver Prices Reaching New Heights Amid US Tariff Threats on Europe?
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Synopsis
Gold and silver prices have hit new all-time highs as investors flock to safe-haven assets amid rising tensions from U.S. tariffs on Europe. With ongoing geopolitical risks and market volatility, what does this mean for investors? Dive into the details of this financial surge and its implications.
Key Takeaways
- Gold and silver prices have reached record highs.
- U.S. tariff threats are influencing market behavior.
- Geopolitical risks are driving investors toward safe assets.
- Price volatility is expected due to dollar index fluctuations.
- Analysts are monitoring key support and resistance levels.
Mumbai, Jan 19 (NationPress) The prices of gold and silver have surged to unprecedented heights on Monday as investors gravitate towards safe-haven assets following U.S. President Donald Trump's threats of imposing new tariffs on multiple European nations over a dispute concerning Greenland.
MCX gold futures for February increased by 1.68% to Rs 1,44,905 per 10 grams, while MCX silver futures for March saw a rise of 4.39%, hitting Rs 3,00,400 per kg.
Spot gold experienced a jump of over 1.6% to $4,700 an ounce, subsequently stabilizing around $4,670, nearing record highs following a significant uptrend.
The surge intensified after Trump's threats of escalating tariffs on imports from eight European nations until the United States is permitted to acquire Greenland. This incited EU envoys to prepare coordinated efforts to dissuade Washington and consider retaliatory actions if tariffs are enacted.
Rahul Kalantri, VP Commodities at Mehta Equities Ltd, expressed that rising concerns over political stability, doubts regarding U.S. monetary policy independence, and ongoing geopolitical tensions have further bolstered gold prices.
Market analysts noted that expectations of further U.S. rate cuts are continually supporting bullion prices after a robust performance in 2025.
Gold and silver prices are anticipated to remain volatile this week due to fluctuations in the dollar index, especially with the impending U.S. Supreme Court ruling on tariffs.
Analysts indicated that gold has support at the Rs 1,41,650-1,40,310 range while facing resistance at Rs 1,44,150-1,45,670. Silver's support is seen in the Rs 2,85,810-2,82,170 range and resistance at Rs 2,94,810-2,96,470.
COMEX Silver stayed strong around the $93 mark after reaching new lifetime highs near $94.30. Analysts noted that structural demand stemming from solar energy, electric vehicles, artificial intelligence, and electronics, along with safe-haven inflows, continues to underpin silver’s long-term strength.
A recent report from Augmont suggested that traders might see some profit booking and retracement to $84 an ounce or Rs 2,60,000 per kg, before prices rise again.
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Point of View
I believe that the recent fluctuations in gold and silver prices highlight the significant impact of geopolitical tensions and U.S. monetary policy. These trends are crucial for investors and could set the stage for future market directions. Monitoring these developments is essential for informed investment decisions.
NationPress
19/01/2026
Frequently Asked Questions
What caused the recent spike in gold and silver prices?
The surge in gold and silver prices is primarily attributed to U.S. President Trump's threats of imposing new tariffs on several European countries, which has led investors to seek safe-haven assets.
What are the current prices of gold and silver?
As of January 19, MCX gold futures are priced at Rs 1,44,905 per 10 grams and MCX silver futures at Rs 3,00,400 per kg.
How are geopolitical tensions affecting the market?
Geopolitical tensions and uncertainties around U.S. monetary policy are contributing to the volatility in gold and silver prices, as investors are increasingly drawn to these precious metals.
What is the outlook for gold and silver prices?
Experts predict that gold and silver prices may remain volatile due to fluctuations in the dollar index and upcoming decisions from the U.S. Supreme Court regarding tariffs.
What support and resistance levels should investors watch?
Gold has support at the Rs 1,41,650-1,40,310 range and resistance at Rs 1,44,150-1,45,670. Silver's support is in the Rs 2,85,810-2,82,170 range and resistance at Rs 2,94,810-2,96,470.
