Gold’s golden start to 2026: Bullion shines while silver stumbles

Gold prices opened the 2026 trading year on a robust footing in the national capital on Thursday, climbing 640 rupees to settle at 138,340 rupees per 10 grams, according to the All India Sarafa Association.

The precious metal, refined to 99.9% purity, had previously finished Wednesday’s session at 1,37,700 rupees per 10 grams.

In contrast, silver extended its decline for a second straight session, shedding 1,600 rupees to reach 2,37,400 rupees per kilogram, a figure that includes all applicable taxes. The industrial metal had closed at 2,39,000 rupees per kilogram the prior day.

The price shifts follow a landmark year for bullion in 2025. During that period, gold delivered returns of 73.45%, while silver significantly outperformed the yellow metal with a massive surge of approximately 164%.

Global markets saw spot gold retreat on Wednesday, falling $28, or 0.65%, to end at $4,310.89 per ounce.

"On the last trading day of the year 2025, spot gold closed with a loss at USD 4,310 per ounce as US yields rebounded," said Praveen Singh, Head of Commodities at Mirae Asset ShareKhan. Singh noted that international prices are likely to remain within a narrow trading range in the near future.

Looking ahead, analysts suggest that the trajectory for precious metals in 2026 will be dictated by a complex array of global influences.

Rahul Kalantri, Vice-President of Commodities at Mehta Equities, told PTI that "in 2026, the key drivers for gold and silver prices will be a mix of macroeconomic, monetary, and geopolitical factors such as expectations around US Federal Reserve interest rates, the strength or weakness of the dollar."

Kalantri further observed that structural support would likely come from persistent central-bank acquisitions and inflows into exchange-traded funds (ETFs). "Together, these factors will determine whether bullion stays near record highs or experiences volatility through the year," he added.

Market observers are also closely watching new restrictions from China regarding silver exports, which are anticipated to tighten global supplies and impact bullion valuations in the coming months.

With inputs from PTI