Ever since the start of 2026, metals have been the talk of the town. Whether it be rising safe-haven demand or supply chain disruptions, the price rally for precious metals seems to have no end.
In India, precious metals soared to new highs as silver futures crossed the record Rs 4 lakh per kg mark, while gold prices surged to a record high of Rs 1.8 lakh per 10 grams. And it’s not just precious metals — base metals like copper, nickel, and aluminium have also been posting strong gains.
So what is behind the rally?
The main reasons why metals are gaining are increased safe-haven demand and a weakening dollar index. Geopolitical uncertainties relating to the US and Iran, along with tariff threats and concerns over the US Federal Reserve’s independence, are driving the rally for metals.
But this is just the crux. Every metal has some additional triggers which are adding to the price hike and keeping it in trend. Let us dive deeper into the price hike behind gold, silver, copper, and other base metals.
Gold nears $5,600/oz amid dollar weakness
Gold prices are lingering near the $5,600 mark, driven by a weakening US dollar and heavy safe-haven demand. Geopolitical tensions between the United States and Iran, coupled with renewed tariff threats by Donald Trump on Canada and South Korea, have added to the rally.
Robust purchases by central banks and persistent ETF inflows continue to accelerate the momentum for the yellow metal, which has gained over 27% so far this year. On Monday (Jan 26), gold first crossed the $5,000 mark, and since then it has gained more than 10%.
Analysts expect prices to remain elevated and even reach the $6,000 mark by this year-end owing to heightened economic tensions in the US, with expectations of a potential shutdown.
Additionally, tensions over the Federal Reserve’s independence have added to market worries as Trump prepares to name the next US Fed chairperson, with Jerome Powell stepping down in May 2026.
With these uncertainties, investors are shifting their money towards safe-haven assets. The trend is also reflected in data released by the World Gold Council on Thursday (January 29), which reported that demand for gold rose globally by 1% to 5,002 tonnes from 4,962 tonnes in 2024. This was mainly driven by a spike of 84% in investment demand, which increased to 2,175 tonnes in 2025 against 1,185 tonnes in 2024.
On MCX, the February delivery contract was up by Rs 14,864, touching a record high of Rs 1,80,779 per 10 grams, while the most-active April contract was up nearly 8%, hitting a new peak of Rs 1,93,096 per 10 grams.
Silver hits $120/oz on demand-supply mismatch
Silver has been continuously outperforming gold, as the price of the white metal touched a record high of $120, tracking gains in gold and dollar weakness. So far in January, silver has gained over 66%, marking one of its highest rallies. However, silver prices are also soaring owing to a huge demand-supply mismatch.
On the demand front, physical demand for silver continues to rise as it is increasingly being deployed in new industrial usages, including solar photovoltaic cells, electric vehicles, and increasing requirements of silver hardware in data centres and AI.
Silver supply has taken a hit ever since the US added silver to its list of critical minerals and China implemented export curbs on the white metal. Further, de-dollarisation, declining ore grades at existing silver mines, and increasing production costs continue to pose hurdles for silver production.
On MCX, the most-active March contract of silver is trading over 5% higher, with the contract soaring to a peak of Rs 4,09,800 per kg.
Copper gains momentum on strong industrial demand
With strong industrial demand and recurring supply tightness, copper prices have been trending higher, with traders increasingly referring to the red metal as the “new gold” of the commodities market.
Analysts have said that industrial demand for copper remains high, driven by sectors linked to renewable energy, defence equipment, EVs, and AI data centres.
On the supply front, the government’s Economic Survey 2025–26 highlighted that copper is facing supply disruptions due to mine outages in Indonesia, Congo, and Chile.
This demand-supply mismatch, coupled with a weak dollar, has increased the safe-haven demand for the metal. Additionally, investors are moving towards copper as gold and silver continue to post record-high gains, traders quoted by Reuters said.
Over the past two months, copper futures on the London Metal Exchange have posted strong gains, climbing nearly 20%.
Meanwhile, on MCX, the February delivery contract of copper was up 7% from its previous close and soared to a new high of Rs 1,432.35 per kg.
Aluminium and nickel gain over supply concerns
Of late, other base metals such as aluminium and nickel have also been posting strong gains. Over the past two months, aluminium futures on the London Metal Exchange have gained nearly 15%, largely due to supply disruptions.
China, the world’s largest producer of the metal, is implementing targeted cuts to aluminium production, which have added to the price rally. On MCX, the February contract for aluminium was up nearly 5% from its previous close as it touched a high of Rs 351.3 per kg.
Meanwhile, global nickel prices have surged 28% over the past two months. The metal extended gains after Indonesia, the world’s largest nickel producer, announced plans to cut nickel ore mining quotas.
On MCX, the most-active February contract of nickel was up 2% from its previous close as it touched a high of Rs 1,791.8 per kg.