Gold, silver prices cool in India: Why experts see this as a pause, not a reversal

Gold and silver prices declined across major Indian cities on Friday, January 9, as a stronger US dollar and easing safe-haven demand weighed on bullion sentiment. In the domestic market, gold traded around ₹1.37 lakh per 10 grams, while silver hovered near ₹2.42 lakh per kg, according to market data.

Silver, despite the day’s softness, continued to outperform gold on a broader basis.

What is driving prices today?

Market participants attributed the near-term weakness in gold to currency movements and global cues.

Jateen Trivedi, VP–Research (Commodity and Currency) at LKP Securities, said gold on the MCX slipped even as international prices remained relatively steady. He noted that rupee volatility pressured domestic bullion, while global signals stayed mixed.

Trivedi added that the coming week could remain volatile, as the US calendar features key data releases such as ADP employment numbers and non-farm payrolls, which often influence expectations around interest rates and the dollar.

“For now, gold is expected to trade in a volatile range of ₹1.35 lakh–₹1.38 lakh per 10 grams over the next few sessions,” he said.

Silver’s stronger undertone

While gold softened, silver’s broader trend remained comparatively resilient.

A January 2026 outlook by Tata Mutual Fund highlighted that silver emerged as the top-performing commodity of 2025, rising about 161% year-on-year.

The report attributed the surge to a persistent global supply deficit, strong industrial demand—particularly from green technologies and renewables—and renewed investor interest.

According to the report, tight mine supply, China’s export restrictions, multi-year low inventories and rising ETF inflows continue to underpin silver’s long-term outlook, even though near-term volatility remains a risk.

Medium- to long-term outlook

Market experts remain constructive on precious metals despite short-term corrections.

Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions and President of the India Bullion and Jewellers Association, said gold and silver are likely to stay well supported structurally.

He expects gold to continue anchoring portfolios, while silver benefits from its higher-beta exposure.

Kothari said that after a sharp rally, intermittent consolidation is likely, but the broader trend remains positive. Over the next year, he sees gold potentially targeting $5,000–5,500 per ounce (₹1.50–1.65 lakh per 10 grams), supported by rate cuts, sustained central-bank buying and fiscal concerns.

Silver, he said, could move toward $95–100 per ounce (₹3.00–3.25 lakh per 10  grams), aided by industrial demand and tight supply. However, he cautioned that 10–15% short-term corrections are possible as part of healthy market retracements.

What to expect in 2026

According to InCred Money, gold and silver could remain bullish through 2026 despite interim volatility. Key drivers include continued central-bank purchases and ETF demand, ongoing geopolitical and economic uncertainty, and silver’s structural supply deficits driven by technology and renewable energy demand.

At the same time, analysts flagged potential headwinds. A sustained rally in global equity markets could reduce immediate safe-haven flows, while a pause in US Federal Reserve rate cuts may temper upside momentum in precious metals.

Investment approach

Experts advise investors to avoid waiting for perfect entry points. Instead, they suggest staggered or SIP-style investing in gold and silver to manage timing risk during volatile phases. They also recommend focusing on fundamentals rather than short-term price moves, noting that persistent inflation risks, geopolitical tensions and currency fluctuations continue to strengthen the long-term case for precious metals.