Silver prices today were muted in early trade on Thursday, January 1, supported by improved spot demand, even as gold witnessed some profit booking amid a firmer US dollar. The broader trend, however, continues to favor precious metals, with silver remaining the standout performer after an exceptional rally last year.
Around 10 am, MCX silver March futures were trading 0.06% higher at 2,35,842 per kg, while MCX gold February futures were down 0.13% at ₹1,35,267 per 10 grams. Gold prices eased in morning trade as investors booked profits, though expectations of further interest rate cuts by the US Federal Reserve helped limit the downside.
Silver outperforms after historic 2025 rally
Gold and silver delivered stellar gains in 2025, according to MCX data. Domestic spot gold surged 56,727, or 75%, rising from 75,913 per 10 grams on December 31, 2024, to 1,32,640 per 10 grams on December 31, 2025. Silver outpaced gold significantly, jumping 1,43,601, or 167%, from 85,851 per kg 2,29,452 per kg over the same period.
In global markets, gold prices recorded their strongest annual gain since 1979, rising 66% in 2025, while silver logged its best year ever, soaring 165%. The rally was driven by US Federal Reserve rate cuts and expectations of further easing, sustained central bank buying, rising ETF inflows, and heightened geopolitical uncertainty. Silver also benefited from additional tailwinds, including strong industrial demand from electric vehicles, solar power, semiconductors, and data centers, combined with tight supply conditions.
Highlighting silver’s relative valuation, Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, said, “Silver prices have historically traded at 2–3% of gold prices. In 2025, silver traded at just 0.95% of gold prices, while currently it is around 1.65%, indicating there is still significant scope for catch-up after years of repression.” He added that growing interest from central banks such as Saudi Arabia, along with rising industrial demand from semiconductors, solar panels and EVs, supports further upside in silver even from current levels.
Will the rally continue in 2026?
Looking ahead, both gold and silver are expected to sustain their broader uptrend into 2026, backed by continued central bank purchases — including China’s 400+ tonnes of gold buying in 2025 — and silver’s deepening supply deficit amid accelerating EV and solar demand. However, volatility could emerge if real interest rates rise sharply or if the US dollar strengthens materially.
Sharing a technical outlook, Aakash Shah, Research Analyst at Choice Equity Broking, said gold’s strong rally of over 65%, which pushed prices beyond. 1,40,000 per 10 grams domestically and saw spot prices peak near $4,550, has opened targets of $4,400–$5,000, equivalent to 1,46,700- 1,55,000. He added that silver, after breaching $83 spot (around 2,54,000 per kg) and posting a 120% annual surge, is positioned to potentially outperform gold further, with key support seen at 2,11,600- 1,80,000 and resistance in the 2,60,000- 2,95,000 zone.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
