The new year for precious metals began on a subdued note, with gold and silver prices trading with modest gains on the first trading day of 2026. This quiet start follows an extraordinary year in 2025, where both metals recorded their most significant annual jump in over forty years.
A Muted Opening After a Spectacular Year
Trading volumes were thin on January 1, as most major international markets remained shut for the New Year's Day holiday. On the Multi Commodity Exchange (MCX), the February gold contract rebounded marginally by ₹443 per 10 grams, touching a day's high of ₹1,35,890. The March silver contract showed initial promise, gaining ₹3,210 per kilogram to hit a high of ₹2,38,911. However, this momentum faded as the session progressed. By 7:30 PM, silver was trading with a minor gain of just ₹172 at ₹2,35,873 per kg.
Expert View: Consolidation, Not Reversal
Ponmudi R, CEO of Enrich Money, described the market as entering 2026 on a steady to mildly softer footing. He attributed this to a period of consolidation following the sharp year-end corrective phase. "This pause comes after the extraordinary rally witnessed throughout 2025," he noted. Crucially, he emphasized that the broader long-term bullish structure for both metals remains firmly in place.
This optimism is supported by several key factors:
- Persistent supply constraints, especially for silver.
- Robust industrial demand from solar energy, electric vehicles, and AI-linked sectors.
- Continued accumulation of gold by central banks worldwide.
- Widespread expectations of further interest rate cuts by global central banks.
Ponmudi advised investors to view the near-term consolidation as a "healthy reset rather than a trend reversal."
Key Price Levels to Watch
The analyst provided specific technical levels for traders and investors. For gold, a decisive move above ₹1,35,700 could open the path towards ₹1,36,000–₹1,36,500. Immediate support is placed at ₹1,34,500, with a stronger base near ₹1,33,500. "The broader bias continues to favour buying on declines," Ponmudi stated.
Regarding silver, he highlighted its dual support from safe-haven appeal and accelerating industrial use. Immediate support is seen in the ₹2,33,000–₹2,30,000 zone. On the upside, the potential remains for a move toward ₹237,000 - ₹238,000 in the near term, especially as global market participation returns to normal levels after the holidays.
This cautious yet optimistic start to 2026 sets the stage for a year where precious metals are expected to be influenced by a complex mix of macroeconomic policies, industrial demand trends, and ongoing geopolitical factors.
