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Gold Rates Today Live Updates: Silver Extends Record Rally, MCX Gold Up 2% After India-EU Trade Deal

Gold rates and silver rates in India continued their record-breaking rally, as investors cheered mother of all trade deal between India and European Union. On January 27, silver creates history by hitting a new lifetime high of over Rs 3.67 lakh, while spot silver has rallied to its strongest since Great Recession in 2008.

Although, unlike silver, MCX gold is still shy of hitting Rs 1.6 lakh mark but is trading at its new record.

India and the European Union have signed the biggest foreign trade agreement (FTA) in their history. It is called the mother of all deals. Key economic sectors such as agri-food, chemicals, textiles, footwear, and pharmaceuticals, among others, have received a mega booster as both countries announce deep tariff cuts to boost their exports, a move that comes amidst rising geopolitical and trade tensions globally.

Globally, geopolitical and trade risks continue to be biggest source of boost to precious metals. Investors have also shifted their appetite from sovereign bonds and dollar to safe haven assets which further contributes to the upside.

In the latest tariffs threat, US President Donald Trump is targeting South Korea, where he plans to hike import duty from 15% to 25%. Amidst this, India and EU are set to sign a new foreign trade deal where the PM Narendra Modi government is likely to slash huge tariffs on cars imported from EU. Further, textile and defence sector could also see a boost.

The outlook for precious metals remain bullish going ahead.

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