Gold and Silver: Gold and silver prices are expected to remain at a moderate to bullish pace in the domestic markets in FY 2026-27, as geopolitical tensions, trade war fears and rising risk of a global recession may increase demand for ‘safe-haven’ (safe investments), even as higher interest rates may limit a sharp rise in prices. During FY 2025-26, on the domestic front, silver futures prices rose to Rs 1,41,431 (142.2 per cent) from Rs 99,461 per kg recorded on April 1, 2025. Whereas, gold increased by Rs 60,258 (67 percent) from Rs 90,503 per 10 grams recorded during this period.
Silver became costlier by 142 percent during the financial year 2025-26
During the financial year 2025-26, silver rose by more than 142 percent, while gold rose by about 67 percent. The main reasons for which were America’s tariff war, geopolitical tensions, heavy purchases by central banks, supply disruptions and global economic uncertainty. Aamir Makda, Commodity and Currency Analyst at Choice Broking, said, “The outlook for gold and silver for the financial year 2026-27 will remain moderately bullish. As the global economy is going through a difficult phase due to geopolitical tensions, trade wars and fears of a global recession, the demand for ‘safe-haven’ assets will increase.
Sharp decline at the end of the financial year
Despite strong gains, bullion prices witnessed a sharp decline or technical correction at the end of the financial year. In March alone, gold prices fell by Rs 11,343 (7 per cent), while silver fell by Rs 41,752 (15 per cent) on the Multi Commodity Exchange (MCX). Commenting on the recent price decline, he said, “As a historically ‘safe-haven’ asset, demand for gold is likely to increase in the second phase of war situations, when the dollar’s gains are limited.” However, Makada cautioned that the US Federal Reserve and other major central banks keeping interest rates high for a long time could limit a sharp rise in bullion prices.
Moderate rise will remain in silver also
Describing the excellent performance of silver in the financial year 2025-26, Makda attributed it to the supply shortage that has persisted for 5 consecutive years, record demand from solar photovoltaic and electric vehicle industries and the rise in institutional investment in ETFs. All of this combined to increase price volatility in a relatively small silver market. Makda expects that there will be a moderate rise in silver in the financial year 2026-27. Prices in the domestic market are likely to range between Rs 2.75 lakh to Rs 3.5 lakh per kg depending on currency fluctuations.
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