Gold prices rise by Rs 1,000, silver prices up Rs 3,800. Are new peaks awaiting in 2026?
Precious metals began trading on a firm footing on Friday, with gold February futures on the MCX opening higher by Rs 996 or 0.73% at Rs 1,36,800 per 10 grams, while silver displayed a more significant surge. The white metal shot up by 1.57% or Rs 3,713 to open at Rs 2,39,586 per kg.
Internationally too, bullion started trading on a strong note, with gold leading the charge on Friday by rebounding from a recent two week low. The uptick follows an extraordinary 2025 for the asset class, where gold had scaled fresh record highs before briefly pulling back.
As of 0019 GMT, spot gold was trading 0.8% higher at $4,346.69 per ounce, recovering some lost ground after slipping earlier this week. The yellow metal had touched a record peak of $4,549.71 on December 26. Meanwhile, US gold futures for February delivery rose by 0.5% to $4,360.60 per ounce.
The tailwinds for this rise appear to be intact. A trio of rate cuts by the US Federal Reserve in 2025 has already lifted market sentiment, and with expectations of at least two more cuts this year, investors are anticipating a liquidity boost that could support commodity prices across the board.
Adding to the bullish undertone is the weakening US dollar. “The dollar’s downward trajectory may continue, driven by de dollarisation trends, mounting US debt, and the Fed’s lower interest rate stance,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
He added that the 10 year US bond yields could dip below 4.0%, which may further fuel the commodity rally. The US Dollar Index (DXY) was last seen near the 98.17 mark, down 0.15%.
While macroeconomic drivers remain supportive, Jain flagged key global dynamics that could swing the momentum. Moderating oil prices, subdued inflation, and easing geopolitical tensions could keep commodity prices well supported through the first half of 2026. But any flare up in the Middle East or deteriorating US Venezuela relations might inject volatility into the mix.Looking ahead, Jain believes that most commodities, precious and otherwise, are likely to extend gains in the first half of the year, before entering a possible phase of profit booking or consolidation in the latter half.
Specifically for gold and silver, he expects the positive momentum of recent years to persist. “High volatility will be a theme, driven by central bank buying, interest rate cuts, portfolio diversification and strong investment demand,” he said.
Price targets: Silver’s glitter far from over
As for price strategy, Jain recommends accumulating silver in the Rs 2,08,000 to Rs 2,28,000 range with a stop loss at Rs 1,88,000 on a weekly closing basis. The upside targets he outlines are ambitious: Rs 2,54,000, Rs 2,75,000 and eventually Rs 3,00,000, highlighting the optimism surrounding precious metals in the months ahead.
Gold rates in physical markets
Gold price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 1,01,832 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,09,632 per 8 grams.
Gold price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,01,120 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,08,880 per 8 grams.
Gold price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,00,928 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,08,664 per 8 grams.
Gold price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,01,504 per 8 grams, while pure gold (24 carat) prices stand at Rs 1,09,240 per 8 grams.
Also read: January jinx weighs for Nifty bulls: 80% failure rate in last 10 years linked to FII selling
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)