Gold and Silver
Gold and silver prices significantly declined on the last day of 2025, after seeing a significantly sharp rally during the year. Experts have advised what investors should do in 2026, and what lies ahead for these previous metals.
The sharp fall may have been driven by profit-booking after the sharp rally. Additionally, hopes for the US-brokered peace deal between Russia and Ukraine reaching a conclusion, which in turn will significantly ease global geopolitical tensions, also may have affected the safe-haven assets.
Decline in gold and silver prices after bull run:
Silver futures with March expiry on the Multi Commodity Exchange of India (MCX) dropped nearly 6 percent to Rs 2,36,375 per kilogram. The future contracts with May expiry meanwhile fell over 5 percent to Rs 2,41,832 per kilogram. The contracts had fallen 8 percent earlier during the day, before recovering some gains.
Gold futures with February expiry meanwhile fell more than 1 percent to Rs 1,35,262 per 10 grams.
Gold and silver prices have pulled back sharply from recent highs after a strong rally due to typical profit booking and technical correction, said Swapnil Aggarwal, Director, VSRK Capital. He said that the long-term trend looks bullish but it cannot be guaranteed because markets can still correct further and volatility remains high.
After a record bull run, a sharp decline in gold and silver prices should be viewed as a positioning reset rather than a breakdown of the long-term thesis, said Harshal Dasani, Business Head, INVasset PMS.
“Silver, in particular, had become a momentum trade in 2025, rising sharply over the year, which made it vulnerable to profit-booking and leveraged unwinds once sentiment turned. Gold, too, delivered outsized gains over the past year, so even routine corrections appear severe when they follow such a strong run,” Dasani said.
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In the near term, price direction will continue to be influenced by the US dollar and real interest rates—any repricing toward higher yields tends to pressure non-yielding assets like gold and silver, while softer yields and risk aversion restore their appeal, according to the analyst.
What lies ahead in 2026?
Silver shows higher volatility than gold showing a bubble-like behavior, Aggarwal from VSRK Capital said. “Strategy entry can be planned when prices stabilise near support zones with market sentiment improving but consider that metals tend to remain choppy for years after a strong rally,” he added.
Looking ahead to 2026, the medium-term outlook remains constructive, especially for silver, Dasani said, adding that the structural industrial demand linked to electronics, solar and electrification remains strong, while supply constraints have persisted for several years, keeping the market in deficit.
Going forward, some further consolidation is hard to rule out, especially with a rise in global yields or the US dollar, said Siddharth Maurya, Founder & Managing Director at Vibhavangal Anukulakara. He however noted that the overall trend for the previous metals going into 2026 still remains positive, with factors such as rate cuts, geopolitics, and central bank purchases.
How to invest in gold and silver in 2026?
According to Aggarwal, investing in ETFs and mutual funds will always be beneficial for longer horizon and SIPs can be the best possible way to follow.
Investors who are looking for a “bottom” in gold and silver prices should rather focus on behavioral signals rather than exact price levels, Dasani said. “A meaningful retracement from recent peaks, stabilisation in ETF flows, and a period of sideways price action typically mark healthier entry zones. Rather than attempting to time the exact low, staggered accumulation into gold and silver ETFs over multiple tranches is the more prudent strategy. Precious metals rarely bottom on the first sell-off; they usually consolidate before resuming their longer-term trend,” he added.
Maurya meanwhile said that making piecemeal investments in ETFs, especially around important support levels, is a safer approach than attempting to get the absolute bottom.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.