Silver Crosses Rs 4 Lakh, Gold Rises Rs 10,000 as Fed Holds Rates: Investment Strategy
**Precious Metals Market Brief | January 29, 2026**
**Record-Breaking Rally**
Gold and silver futures have shattered previous records on the MCX, driven by intense buying momentum and global cues.
* **Silver Futures:** Crossed the historic **₹4,00,000 per kg** mark, trading near **₹4,07,456** to **₹4,10,000**.
* **Gold Futures:** Surged past **₹1,80,000 per 10 grams**, with 24-carat spot rates hovering around **₹1,78,850**.
**Global Market Correlation**
International markets mirror this volatility. Gold futures on Comex breached **$5,600 per ounce**, while silver futures climbed to a fresh peak of **$119.51 per ounce**. The divergence between the two metals has narrowed, though silver has outperformed gold in percentage gains this month due to aggressive industrial demand from the AI and solar energy sectors.
**Key Drivers**
**1. Federal Reserve Stance:**
The U.S. Federal Reserve held interest rates steady at **3.50%–3.75%** in its first meeting of 2026. This decision to pause cuts, despite political pressure, has kept the U.S. dollar weak, further fueling the rally in non-yielding assets like bullion.
**2. Geopolitical Instability:**
Escalating tensions, specifically recent threats involving the U.S. and Iran, have accelerated safe-haven inflows. Institutional distrust and currency volatility are prompting investors to hedge heavily with physical assets.
**3. Industrial Squeeze:**
Silver's parabolic rise is compounded by a physical supply deficit. Buying from electronics and renewable energy manufacturers is colliding with investment demand, creating a sharp upward pressure on prices.
**Market Sentiment**
Traders remain bullish as liquidity flows into commodities. The current price action indicates a structural shift where dips are being aggressively bought, signaling sustained momentum for both metals in the near term.