After stellar 2025 rally, gold and silver may extend gains in 2026

As 2025 turned out to be historic for precious metals, with gold delivering returns of nearly 65 per cent and silver outperforming with gains of over 140 per cent, an expert said that the positive momentum likely to continue in 2026 as well.

Speaking to Indo-Asian News Service, Nainesh Pachchigar, Gujarat President of the India Bullion and Jewellers Association (IBJA), said gold and silver rewarded investors handsomely in 2025, and given prevailing global conditions, the positive momentum could continue this year as well.

“International prices are currently hovering around $4,300 per ounce and could potentially rise to $5,000 per ounce,” Pachhigar noted while elaborating on the outlook for gold.

“This suggests an upside of nearly $700 per ounce, or over 16 per cent, from current levels,” Pachchigar stated.

On silver, Pachhigar said the metal also holds strong prospects. He expects silver prices to climb to around $85 per ounce in the coming period, compared to the current level of about $70 per ounce.

“Silver prices to climb to around $85 per ounce in the coming period, compared to the current level of about $70 per ounce,” Pachhigar added.

“This indicates a possible additional upside of nearly 20 per cent in 2026,” he mentioned.

Sharing his views on the diamond market, Pachhigar said lab-grown diamonds are witnessing significantly higher demand globally compared to natural diamonds, largely due to their lower prices.

He added that the affordability factor is likely to keep demand for lab-grown diamonds strong over the next few years.

However, he also believes that demand for natural diamonds could revive after three to four years, though it is expected to remain subdued in the near term.

Market experts attribute the strong performance of gold and silver in 2025 to heightened global uncertainty, US tariff-related concerns, and rising geopolitical tensions among major economies.

Meanwhile, Nuvama Professional Clients Group also anticipated that both the precious metals are likely to maintain their bullish trend with dips and consolidation phases in between.

Meanwhile gold and silver entered 2026 with elevated volatility after an exceptional 2025 rally, analysts said on Saturday, adding that the fundamental outlook for precious metals remains constructive.

Gold futures with February expiry eased moderately down 0.04 per cent, settling at Rs1,35,752 on MCX on Friday. The price of 10 grams of 24-carat gold closed the week at Rs1,34,782 up from Rs1,33,195 at the year end, according to data published by the India Bullion and Jewellers Association (IBJA).

“Comex gold had surged by about $70 to trade near $4,385, supported by rising expectations of a US Federal Reserve rate cut.

However, recent sessions have been marked by sharp volatility as profit booking emerges from higher levels, partly triggered by increased margin requirements,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Investors remain keen on cues from key US economic data next week, including ADP Non-Farm Employment, non-farm payrolls, and the unemployment Rate, which are likely to drive fresh volatility.

Gold surged nearly 66 per cent, surpassing $4,500 per ounce, while silver outperformed with a 171 per cent rise, fuelled by safe-haven demand, aggressive central-bank buying, and mounting industrial supply shortages.

They said recent sharp corrections were largely driven by profit-taking and margin hikes. Importantly, these declines quickly attracted buying interest, supported by renewed expectations of Fed rate cuts, ongoing geopolitical risks, and sustained demand for real assets.

Analysts said that gold is expected to trade in a broad range of Rs 1,34,000- Rs 1,40,000 in the near term.

MCX gold showed strong support in the Rs135,000-Rs134,000 band with resistance at Rs136,500-Rs138,000, said Ponmudi R, CEO of Enrich Money. Gold is expected to deliver steady, albeit moderated, gains, with potential to approach $5,000 amid easing monetary conditions, continued ETF inflows, and heightened global risk-hedging demand, he forecasted.

Silver’s long-term structure appears even stronger, supported by persistent supply deficits and accelerating demand from solar, EV, AI, and electronics sectors, although near-term volatility from dollar strength cannot be ruled out.

Precious metals, especially silver, took a breather on the final trading day of the year 2025 on Wednesday, after a run‑up to record high followed by aggressive profit‑booking.

Silver futures for March 2026 on MCX tumbled 4.63 per cent to Rs2,39,395 per kg and gold futures for February 2026 slipped 0.51 per cent to Rs1,35,973 per 10 grams in morning trade.

Volatility remained elevated amid geopolitical tensions such as US strikes on Venezuela’s dock facilities and Chinese naval exercises that bolstered safe‑haven demand earlier in the week.

The retreat came after sharp gains through most of 2025. Silver has gained 24 per cent in December and 135 per cent year-over-year, reflecting tight supply-demand fundamentals and robust safe-haven flows, said analysts.

Indo-Asian News Service