Gold saw profit booking on January 1, but silver prices were steady due to robust demand. MCX silver futures increased little, and central bank purchases and rising industrial demand are predicted to fuel both metals' upward trajectory through 2026.
While gold saw some profit taking on a stronger US dollar, silver prices remained restrained in early trading on Thursday, January 1, thanks to higher spot demand. However, the overall trend still favors precious metals, with silver continuing to be the best performer following a remarkable surge last year.
At 10 a.m., MCX gold February futures were down 0.13% at ₹1,35,267 per 10 grams, while MCX silver March futures were up 0.06% at ₹2,35,842 per kg. Expectations of additional interest rate reduction by the US Federal Reserve helped limit the decline, but gold prices dropped in morning trading as investors booked profits.
Silver fares better following its historic 2025 rise.
According to MCX data, gold and silver produced outstanding increases in 2025. From ₹75,913 per 10 grams on December 31, 2024, to ₹1,32,640 per 10 grams on December 31, 2025, domestic spot gold increased by ₹56,727, or 75%. Over the same era, silver surpassed gold by ₹1,43,601, or 167%, from ₹85,851 per kg to ₹2,29,452 per kg.
In international markets, silver had its best year ever, climbing 165%, while gold prices saw their biggest annual gain since 1979, rising 66% in 2025. Rising ETF inflows, ongoing central bank purchases, US Federal Reserve rate reduction and anticipation of additional easing, and increased geopolitical concern all contributed to the surge. Strong industrial demand from solar power, electric vehicles, semiconductors, and data centers, together with limited supply, were further factors that helped silver.
Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, highlighted the relative value of silver by stating, "Silver prices have historically traded at 2-3% of gold prices." Silver traded at just 0.95% of gold prices in 2025, but it is today at about 1.65%, suggesting that there is still a lot of room for growth.
Will there be another rally in 2026?
Going forward, it is anticipated that both gold and silver will continue their wider upward trend into 2026, supported by ongoing central bank purchases, such as China's purchase of more than 400 tons of gold in 2025, as well as silver's widening supply shortage due to rising demand for solar and electric vehicles. However, a significant increase in real interest rates or a significant strengthening of the US currency could cause instability.
Aakash Shah, a research analyst at Choice Equity Broking, shared a technical outlook, stating that goals of $4,400–$5,000, or ₹1,46,700–₹1,55,000, have been opened by gold's robust advance of over 65%, which drove prices beyond ₹1,40,000 per 10 grams domestically and saw spot prices top at $4,550. He continued by saying that silver is positioned to potentially outperform gold further after breaking the $83 spot (about ₹2,54,000 per kg) and showing a 120% yearly gain. Key support is seen at ₹2,11,600–1,80,000, while resistance is expected at ₹2,60,000–2,95,000.
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