Gold and silver started 2026 with increased volatility following a strong rally in 2025, as per analysts. Gold futures for February saw a slight decline of 0.04% to settle at Rs 1,35,752 on MCX on Friday. The price of 10 grams of 24-carat gold closed the week at Rs 1,34,782, up from Rs 1,33,195 at the end of the previous year, according to data from the India Bullion and Jewellers Association (IBJA).
Jateen Trivedi, VP Research Analyst at LKP Securities, mentioned that Comex gold had risen by about $70 to trade near $4,385, supported by expectations of a US Federal Reserve rate cut. However, recent sessions have seen sharp volatility due to profit booking at higher levels, partly triggered by increased margin requirements.
Investors are closely watching key US economic data in the upcoming week, such as ADP Non-Farm Employment, non-farm payrolls, and the unemployment rate, which are expected to bring fresh volatility. Gold surged by nearly 66%, exceeding $4,500 per ounce, while silver saw a remarkable 171% increase, driven by safe-haven demand, central bank buying, and industrial supply shortages.
Analysts noted that recent corrections were mainly due to profit-taking and margin hikes. These declines quickly attracted buying interest, supported by expectations of Fed rate cuts, geopolitical risks, and sustained demand for real assets. Gold is projected to trade within a range of Rs 1,34,000–Rs 1,40,000 in the near future.
Ponmudi R, CEO of Enrich Money, highlighted that MCX gold exhibited strong support in the Rs 135,000–Rs 134,000 range, with resistance at Rs 136,500–Rs 138,000. Gold is anticipated to show steady gains, potentially reaching $5,000 amid relaxed monetary conditions, continuous ETF inflows, and increased global risk-hedging demand. Silver’s long-term outlook remains robust, supported by supply deficits and rising demand from various sectors like solar, EV, AI, and electronics, despite possible near-term volatility due to dollar strength.
