The near-term softness follows profit-taking and subdued global cues, even as the broader outlook for precious metals remains constructive.
As per prevailing market indications on January 1, 24-karat gold was priced at ₹13,488 per gram, while 22-karat gold stood at ₹12,364 per gram in India.
Silver was valued at around ₹2.38 lakh per kilogram.
The cautious start comes after a landmark year for bullion. Gold rose more than 73% in 2025, while silver outperformed with gains of about 164%, driven by strong investment flows and industrial demand.
Commenting on the broader trend, Inderbir Singh Jolly, CEO of PL Wealth, said gold’s strong performance in 2025 reflected a structural shift in portfolio positioning by investors and central banks. He said the rally was supported by sustained inflows into exchange-traded funds, continued central bank buying for reserve diversification, and heightened geopolitical and macroeconomic risks.
While some consolidation is natural after a sharp run-up, Jolly said gold is likely to continue playing a stabilising role in diversified portfolios heading into 2026.
Harshal Dasani, Business Head at INVasset PMS, said the recent correction in gold and silver prices should be viewed as a positioning reset rather than a breakdown of the long-term investment thesis.
He noted that silver, in particular, had turned into a momentum-driven trade in 2025, making it vulnerable to profit-booking and leveraged unwinds once sentiment softened.
Dasani added that price direction in the near term would remain sensitive to movements in the US dollar and real interest rates.
From a market outlook perspective, Rahul Kalantri, Vice-President (Commodities) at Mehta Equities, said gold is more likely to enter a consolidation or sideways phase in 2026 after its strong rally, as much of the bullish news is already priced in. He added that silver could continue to find support from strong industrial demand, energy-transition themes and its tendency to outperform gold in the later stages of a precious metals cycle, though volatility is likely to remain elevated.
On global cues, Jigar Trivedi, Senior Research Analyst at Reliance Securities, said lingering geopolitical uncertainties and expectations around monetary policy continue to underpin safe-haven demand for bullion, even as near-term price corrections play out.
-With PTI inputs
