Gold price today: Gold rates surged by nearly ₹3,000, or almost 2%, on the MCX on Wednesday (January 21) morning to hit a fresh record high, fuelled by US-EU trade war fears, dollar’s weakness and strong retail demand.

MCX gold February futures hit a record high of ₹1,53,316 per 10 grams, while MCX silver March futures rose by 0.50% to ₹3,25,260 per kg.

The United States (US) and the European Union (EU) are on the cusp of a major trade war that could have serious ramifications for the global economy and potentially even upend the NATO alliance.

As per media reports, the European Parliament may soon announce the suspension of approval of the US trade deal agreed in July.

Moreover, US President Donald Trump said on Tuesday that he would not back down from his push to acquire Greenland, according to news agency Reuters.

Trump has announced a 10% tariff on eight European countries— Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland— from February 1, and threatened these tariffs would be raised to 25% from June 1, 2026.

European countries are reportedly considering activating the anti-coercion instrument, a trade defence mechanism designed to counter economic pressure from foreign governments.

The tussle between the US and EU is keeping investors nervous, driving them to safe-haven assets like gold. The US dollar has also weakened due to selling by traders and importers. This has also supported gold’s ascent.

“Gold and silver extended their gains and hit fresh record highs amid global uncertainty due to the escalation of the trade war. Global equity markets crashed amid the escalation of the trade war, driven by the U.S. President’s ambition to annexe Greenland. Panic selling in riskier assets is supporting safe-haven buying for both precious metals,” Manoj Kumar Jain of Prithvifinmart Commodity Research observed.

(This is a developing story. Please check back for fresh updates.)

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