Gold and Silver Prices Steady After Record Gains in 2025

Gold and silver prices began the year 2026 with slight increases, continuing a trend following a record surge in 2025. Both precious metals saw limited trading activity as many global markets remained closed for New Year's Day. Analysts indicate that this consolidation phase may be a healthy sign for future gains.

On 1 January 2026, the February gold contract on the Multi Commodity Exchange (MCX) saw a modest rebound of ₹443, reaching a peak of ₹135,890 per 10 grams. Meanwhile, March silver contracts initially showed promise, with silver prices climbing to a high of ₹238,911 per kilogram before settling slightly lower at ₹235,873, a minor gain of ₹172.

Ponmudi R, Chief Executive Officer at Enrich Money, commented on the current market conditions. He noted that the prices of precious metals are stabilising after experiencing a significant corrective phase at the end of 2025. "This pause should be viewed as a healthy reset rather than a trend reversal," he stated.

Ponmudi expressed confidence in the long-term bullish outlook, citing sustained supply constraints, particularly for silver, strong industrial demand from sectors like solar energy, electric vehicles (EVs), and artificial intelligence, along with ongoing gold accumulation by central banks.

He elaborated on the potential price trajectory for gold, stating, "A decisive move above ₹135,700 could pave the way towards ₹136,000 to ₹136,500, while immediate support is at ₹134,500, with a stronger base around ₹133,500. The general trend favours buying on dips."

Silver also remains well-supported by both safe-haven demand and increasing industrial applications. Ponmudi highlighted that immediate support for silver is expected between ₹233,000 and ₹230,000, with upside potential towards ₹237,000 to ₹238,000 as global market participation returns to normal levels.

The rising prices of gold and silver can be attributed to a combination of factors including supply chain disruptions, growing investor interest, and inflation concerns. As the world adjusts to economic challenges, analysts will continue to monitor the performance of precious metals closely.

Investors are advised to exercise caution and consult with certified financial advisors before making any investment decisions, as market conditions can change rapidly.