In a powerful start to the new year, precious metals have extended their historic bull run, with gold prices in India crossing ₹1.40 lakh per 10 grams and silver soaring to ₹2.6 lakh per kilogram. This surge marks a continuation of the spectacular rallies seen in 2025, driven by a potent mix of geopolitical tensions, economic uncertainty, and robust industrial demand.
The Current Price Landscape
As of January 10, 2026, the spot price for 24-carat gold in major Indian cities like Mumbai and Delhi has reached ₹14,046 per gram, a significant jump from recent levels. On the Multi Commodity Exchange (MCX), gold futures have rallied approximately 2.5% in 2026 alone, climbing from ₹1,35,447 to ₹1,38,875 per 10 grams.
Silver's performance has been even more dramatic. After a stellar 2025 where it gained nearly 150%, the white metal is now trading at ₹260 per gram (₹2,60,000 per kg). This represents a staggering increase of over ₹1 lakh per kilogram from just a month ago.
Why Are Gold and Silver Climbing?
Market experts point to a convergence of global factors fueling this rally:
- Geopolitical Safe-Haven Demand: Escalating tensions, including the US-Venezuela conflict and unresolved Russia-Ukraine issues, are pushing investors toward traditional safe assets like gold.
- Economic Recession Fears: Concerns are growing about a potential US recession, signaled by a rising unemployment rate, which weakens the dollar and boosts gold's appeal.
- Unprecedented Central Bank Buying: Nations like China continue to aggressively stockpile gold to diversify reserves, creating sustained foundational demand.
- Silver's Industrial Squeeze: Unlike gold, silver is experiencing a structural supply deficit. Its critical use in solar panels, electronics, and AI infrastructure leads to consumption that permanently removes metal from the market.
Expert Outlook: How High Can They Go?
Analysts are watching key resistance and support levels to gauge the rally's sustainability.
- Gold's Path: Experts note strong support between ₹1,35,000-₹1,37,000 per 10 grams. A decisive break above the ₹1,40,000-₹1,42,000 resistance band could propel prices toward ₹1,45,000 and higher. Some long-term forecasts suggest potential for gold to reach ₹1,55,000-₹1,60,000 within the year.
- Silver's Potential: Silver is expected to be more volatile. Analysts like Saif Mukadam of ICICI Direct see strong support in the ₹1,50,000-₹1,65,000 per kg range, with an upside potential extending to ₹2,75,000. However, they caution that after a 140% gain in 2025, the risk-reward ratio at current highs may not be favorable for new investments, advising investors to wait for pullbacks.
Table: Key Price Levels to Watch (MCX)
| Metal | Strong Support Zone | Immediate Resistance | 2026 Potential Target |
| Gold (per 10g) | ₹1,35,000 - ₹1,37,000 | ₹1,40,000 - ₹1,42,000 | ₹1,55,000 - ₹1,60,000 |
| Silver (per kg) | ₹1,50,000 - ₹1,65,000 | ₹2,60,000 (Current High) | ₹2,75,000 - ₹3,00,000 |
Smart Investing in a Volatile Market
For individuals looking to navigate this volatile but rewarding market, experts offer several strategies:
- Adopt Dollar-Cost Averaging (DCA): Instead of a lump-sum investment, regularly invest a fixed amount. This smooths out your purchase price over time and mitigates the risk of buying at a peak.
- Wait for Healthy Pullbacks: After such explosive rallies, metals often undergo corrections. Prithviraj Kothari of the India Bullion and Jewellers Association notes that 10-15% pullbacks are common in bull markets and can offer better entry points.
- Diversify Your Approach: Consider different forms of exposure:
- Physical Gold/Silver: Jewelry, coins, or bars for tangible asset ownership.
- Paper Gold: Gold ETFs or sovereign gold bonds for easier trading and storage.
- Certified Purity: Always insist on BIS-hallmarked jewellery to guarantee purity and value.
The Bottom Line
The fundamental case for gold and silver remains strong, supported by global macroeconomic and geopolitical trends. While short-term volatility and corrections are expected, the long-term structural bull market appears intact. Investors should align their actions with their risk tolerance, use strategic entry methods like DCA, and view any significant price dips not as a downturn, but as a potential opportunity within a larger upward trend.
