NEW DELHI: Precious metals have experienced remarkable momentum over the past year, and as the festive and wedding season draws closer, investors are closely watching the bullion market. Commodity experts predict that both gold and silver could scale new heights by Diwali and the end of 2026, driven by persistent geopolitical uncertainties, robust central bank accumulation, and strong industrial demand.

Current Market Standing

Recently, gold prices on the Multi Commodity Exchange (MCX) have seen minor corrections due to a stronger US dollar and surging Treasury yields. Spot gold hovered around $4,318.90 per ounce internationally, with 24-carat gold trading near ₹1,51,760 per 10 grams. Similarly, silver futures on the MCX experienced a slight dip, settling around ₹2,33,650 per kilogram.

Despite these short-term fluctuations, historical data highlights a stellar upward trajectory. Gold has surged roughly 16.40%, moving from ₹1,30,588 per 10 grams in late October 2025 to around ₹1,52,000 recently. Meanwhile, silver has witnessed an astronomical rally of over 52.81%, climbing from ₹1,53,131 to ₹2,34,000 per kilogram over the same timeframe.

Gold Price Outlook: Targeting ₹1,80,000

According to Ajay Suresh Kedia, Founder and Director of Kedia Advisory, gold continues to find solid structural support from aggressive central bank reserve accumulation, rising ETF inflows, reserve diversification by global institutions, and potential rupee depreciation.

"We expect gold to test ₹1,80,000 per 10 grams by Diwali or year-end 2026, implying an approximate 18% upside from current reference prices," Kedia noted.

Silver Price Outlook: Eyeing ₹3,00,000

While silver presents a higher degree of volatility, its growth potential remains even more pronounced. The white metal is supported by persistent supply deficits, inflexible mine production, and surging structural demand from high-growth sectors such as electronics, electric vehicles (EVs), power infrastructure, and clean energy initiatives.

"Silver could test approximately ₹3,00,000 per kilogram by Diwali or year-end, representing nearly 28% potential upside," Kedia stated. He added that the gold-silver ratio, currently hovering near 65–66, continues to favor silver if it eventually corrects toward the 50–55 range.

Expert Advice for Investors

Market experts advise retail investors and traders to adopt a calibrated approach. Rather than deploying capital all at once, buyers should build positions gradually on dips, steer clear of high leverage, and maintain a well-balanced, diversified bullion portfolio. Given silver's higher growth trajectory, analysts suggest allocating a slightly higher share to it for aggressive gains, provided investors can stomach short-term market swings.