Daijiworld Media Network - New Delhi
New Delhi, Jan 3: Gold and silver have begun 2026 amid heightened price swings following an extraordinary rally last year, but market experts believe the broader outlook for precious metals continues to remain favourable.
On Friday, gold futures for February delivery on the MCX edged marginally lower by 0.04 per cent to settle at Rs 1,35,752. According to data from the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold closed the week at Rs 1,34,782 per 10 grams, marking a rise from Rs 1,33,195 at the end of 2025.
Analysts attributed the recent volatility to profit-booking after steep gains and tighter margin requirements. Jateen Trivedi, VP Research Analyst (Commodity and Currency) at LKP Securities, noted that Comex gold had recently jumped nearly $70 to trade close to $4,385, driven by growing expectations of a US Federal Reserve rate cut. However, sharp intraday fluctuations have followed as traders lock in profits at elevated levels.
Market participants are now closely watching key US economic indicators due next week, including ADP employment data, non-farm payroll numbers and the unemployment rate, which are expected to influence near-term price direction.
In 2025, gold recorded a remarkable surge of nearly 66 per cent, crossing $4,500 per ounce, while silver significantly outperformed with a staggering 171 per cent gain. Analysts said the rally was powered by safe-haven demand, aggressive central-bank purchases and tightening industrial supply, particularly for silver.
Recent price corrections, they added, have largely been technical in nature and driven by margin hikes and profit-taking. Notably, dips have attracted swift buying interest, underpinned by renewed hopes of monetary easing, persistent geopolitical uncertainties and strong demand for real assets.
In the domestic market, analysts expect gold to trade within a wide range of Rs 1,34,000 to Rs 1,40,000 in the near term. Ponmudi R, CEO of Enrich Money, said MCX gold has found solid support between Rs 1,34,000 and Rs 1,35,000, while resistance is seen in the Rs 1,36,500 to Rs 1,38,000 zone.
Looking ahead, experts believe gold could continue to post steady, though more moderate, gains and may even approach the $5,000 mark if easing monetary conditions, sustained ETF inflows and global risk-hedging demand persist.
Silver’s longer-term fundamentals appear even stronger, supported by ongoing supply deficits and rapidly rising demand from sectors such as solar energy, electric vehicles, artificial intelligence and electronics. However, analysts cautioned that short-term volatility linked to a stronger US dollar cannot be ruled out.