Will Gold and Silver Prices Continue to Rise in 2026? Here’s What Investors Should Know
Gold and silver prices have been witnessing a sustained rally, raising an important question among investors: Will this upward trend continue in 2026? Market experts believe that several global and domestic factors are likely to keep precious metals in focus in the coming year.
According to analysts, geopolitical risks, uneven global economic growth, and persistent inflation concerns have significantly boosted demand for gold as a safe-haven asset. Expectations of monetary policy easing in major economies, including the United States, are also supporting gold prices, as the metal typically performs well in a low-interest-rate environment. As a result, the outlook for gold in 2026 remains largely positive.
Reflecting this trend, gold prices rose in early trading on December 25 amid global uncertainty. In Mumbai, the price of 24-carat spot gold increased by around ₹320 per 10 grams, reaching ₹1.39 lakh. Silver prices moved even higher, surging by ₹1,000 per kilogram to ₹2.34 lakh in the spot market. Silver has been on a steady upward trajectory for several weeks.
Industry experts point out that gold’s recent price movement signals strong momentum. Aksha Kamboj, Vice President of the Indian Bullion and Jewellers Association (IBJA), said current prices reflect sustained investor interest. She noted that gold continues to attract buyers as a safe-haven asset and that many analysts expect prices to scale new highs in 2026.
Silver, meanwhile, has outperformed gold in recent months. Experts attribute this to robust industrial demand from sectors such as renewable energy, electronics, and electric vehicles. Since silver is a critical component in solar panels, batteries, and EV manufacturing, demand has risen sharply.
Harshal Dasani, Business Head at INVasset PMS, explained that the global silver market is facing structural pressure. He noted that nearly 70% of silver production comes as a byproduct of other metals, limiting supply growth. Strong demand has reduced inventories, with limited reserves available on exchanges, while interest in silver as a financial investment has also increased.
Is a 5–10% Allocation to Gold Advisable?
Market experts suggest that both gold and silver will continue to play an important role as safe-haven assets. However, they caution that factors such as interest rate cuts in major economies and periodic profit booking could lead to short-term price corrections.
Despite this, analysts generally recommend that investors maintain a 5–10% allocation to gold in their portfolios to hedge against volatility and inflation, while viewing silver as a higher-risk, higher-reward complement driven by industrial demand.
Overall, while short-term fluctuations are possible, t the long-term outlook for gold—and increasingly for silver-remains optimistic heading into 2026.
