Gold and silver have started 2026 on a powerful note, reinforcing their status as preferred safe-haven assets amid rising global uncertainty. In the early days of the new year, silver prices have surged by nearly 13%, while gold has maintained its strong upward momentum, delivering exceptional returns over the past year. The rally reflects growing investor concern over geopolitical tensions, policy uncertainty in the US, and weakening confidence in fiat currencies.

Market experts believe that while volatility may remain high in the coming months, precious metals could continue to play a crucial role in investment portfolios.

Strong Performance Signals Shift to Safe-Haven Assets

The sharp rise in gold and silver prices highlights a clear trend: investors are increasingly seeking safety. Over the last 12 months, gold prices have climbed by around 85%, while silver has delivered extraordinary gains, making it one of the best-performing assets globally.

This surge is being driven by a combination of geopolitical risks, global political instability, and uncertainty surrounding central bank policies, especially in the United States. As confidence in traditional financial systems weakens, demand for tangible and historically reliable assets like gold and silver has increased significantly.

Domestic Market Snapshot: Gold Near Record Highs

The bullish trend is clearly visible in the Indian markets as well. On the Multi Commodity Exchange (MCX), gold futures for February delivery opened slightly lower at ₹1,41,731 per 10 grams, after touching an all-time high in the previous session.

Market participants view this minor dip as profit booking rather than a trend reversal. The broader sentiment for gold remains positive, supported by strong global cues and sustained investment demand.

Meanwhile, silver futures for March delivery were seen trading higher at around ₹2,69,369 per kilogram, reflecting continued buying interest despite elevated price levels.

International Markets Hit Record Levels

Globally, precious metals have also reached historic milestones. Gold briefly crossed $4,600 per ounce, while silver surged past $86 per ounce, underscoring the intensity of the rally.

According to market analysts, this sharp rise is the result of simultaneous political, institutional, and geopolitical risks. In times of such uncertainty, investors typically shift capital toward gold and silver, viewing them as protection against volatility and currency depreciation.

US Federal Reserve Uncertainty Adds to Market Anxiety

Concerns escalated further following reports that US federal prosecutors issued warnings involving Federal Reserve Chair Jerome Powell. Powell has reportedly described these developments as attempts to pressure the central bank into cutting interest rates.

Such events have raised serious questions about the independence of the US Federal Reserve. Whenever central bank autonomy comes under scrutiny, confidence in paper currencies tends to weaken—directly benefiting assets like gold and silver that are perceived as stores of value.

Geopolitical Tensions Continue to Fuel Demand

Global geopolitical conditions remain tense. The US has reportedly increased its involvement in Venezuela, while unrest in Iran has prompted warnings of possible military action. Additionally, the ongoing Ukraine conflict, rising tensions between China and Japan, and renewed debates involving Greenland have further clouded the global outlook.

Adding to the uncertainty, threats of imposing 25% penalties on countries trading with Iran have dampened global risk sentiment, pushing investors further toward safe-haven investments.

Historic Rise in Indian Gold and Silver Prices

In India, gold prices for February delivery recently touched ₹1,42,340 per 10 grams, marking an increase of over 85% compared to early 2025. Silver prices have climbed close to ₹2.7 lakh per kilogram, representing a staggering 200% rise in a year.

This remarkable performance has placed silver among the top-returning assets worldwide, attracting both institutional and retail investors.

Technical Indicators Remain Bullish

From a technical perspective, the outlook for precious metals remains positive. According to Prithviraj Kothari, Managing Director of Riddhisiddhi Bullions, gold has decisively crossed its earlier resistance level of $4,570 per ounce.

He noted that the next potential targets for gold could be in the range of $4,745–$4,750, followed by $4,966–$4,970. For silver, Fibonacci analysis indicates possible resistance levels near $88 and $93, while the $70 zone is considered a strong support level.

Caution Advised Despite Strong Momentum

Despite the bullish outlook, market experts are urging caution. The exceptional gains seen over the past year may not continue at the same pace. At current elevated levels, sharp price swings are likely, and any easing of geopolitical or policy-related risks could trigger a significant correction.

Key Takeaway for Retail Investors

For retail investors, gold and silver continue to serve as important tools for portfolio protection and diversification. However, experts advise against chasing prices purely based on momentum. A balanced, disciplined, and strategic investment approach is essential in the current environment.

In an era marked by uncertainty, patience and risk management remain the most valuable assets for investors navigating the volatile precious metals market.

Disclaimer: The information provided above is for informational purposes only. Investments in the commodities market are subject to market risks. Investors should consult certified financial advisors before making any investment decisions.