In a year marked by heightened global uncertainty, precious metals delivered exceptional returns for investors, with silver emerging as a surprise winner. Silver prices surged by more than 137 per cent — outperforming gold — which also posted a strong gain of around 68 per cent this year.
With equity markets facing volatility, both metals strengthened their position as preferred safe investment options, but silver clearly outshone all traditional choices. Gold’s strong performance was supported by geopolitical tensions, inflation concerns, and expectations of interest rate cuts by the US Federal Reserve.
A major driving force behind gold’s rally was steady buying by global central banks. For three consecutive years — 2022, 2023 and 2024 — central banks have purchased more than 1,000 tonnes of gold each year. Alongside this, global investors continued to invest through gold ETFs, using them as a safe place to park funds.
Big global banks have turned increasingly bullish on gold’s outlook. Goldman Sachs has raised its 2026 year-end gold price target to $4,900 per ounce, citing strong central bank demand and ETF inflows. Deutsche Bank has also upgraded its outlook, projecting gold prices at $4,450 per ounce in 2026.
Silver’s rally, however, has been driven by more than just safe-haven demand. Strong industrial usage has played a crucial role. Growing demand from sectors such as solar power, electric vehicles, and electronics has significantly increased silver consumption.
At the same time, supply constraints have tightened the market, pushing prices sharply higher. This dual role — as a precious metal and an industrial input — has helped silver deliver more than double the returns of gold in 2025. Looking ahead, experts believe the positive momentum in silver could continue into 2026.
Market specialists say that strong industrial demand, limited supply, and supportive global trends could help silver rise by another 15 to 20 per cent next year. Some analysts expect that in the first half of 2026 alone, silver may generate an additional 20 to 25 per cent return from current levels, though they advise investors to invest gradually, especially if prices see short-term corrections.
Gold’s outlook also remains positive for 2026. Continued central bank buying, possible US rate cuts, and ongoing geopolitical risks are expected to support prices. Analysts suggest that keeping an eye on central bank activity — whether they continue buying, hold their reserves, or start selling — will be critical, as their actions often signal future price trends well in advance.
“With uncertainty still dominating the global economic landscape, precious metals are likely to continue playing an important role in investor portfolios, offering a mix of safety and growth potential,” experts stated.
Meanwhile, both metal’s prices climbed to new record highs on the MCX on Wednesday morning, helped by a weak US dollar and expectations that the US Federal Reserve may cut interest rates further. Gold futures for February rose 0.42 per cent to touch an all-time high of Rs 1,38,469 per 10 grams. Silver futures for March jumped nearly 2 per cent to hit a fresh record of Rs 2,23,742 per kg.
In the global market, gold prices crossed the $4,500 per ounce level for the first time. The rise was driven by strong demand for safe-haven assets as investors expect more interest rate cuts by the US Federal Reserve next year.
