Gold and silver rates opened with significant upside gaps during Friday morning trading, extending the previous evening's rally. Gold reached a new peak of $4,969.69 per ounce in international markets, while silver touched an intraday high of $98.98 per ounce, registering approximately 2.50% gains.

Global Price Targets Signal Continued Bullishness

Major global brokerages have set ambitious targets for gold prices, reflecting widespread optimism about the precious metal's prospects:

Notably, targets set by these global brokerages for gold prices in 2026 have already been achieved within the first three weeks of the year. Robert Kiyosaki, author of 'Rich Dad Poor Dad', has predicted silver prices may reach $200 per ounce in 2026, advising investors to seek bottom-fishing opportunities during significant dips.

ETFs Emerge as Viable Alternative for Retail Investors

With physical gold and silver prices reaching record levels, investment experts suggest ETFs as attractive alternatives for retail investors. Jitendra Solanki, a SEBI-registered investment expert, highlighted the advantages: "ETFs allow even a small investor to start with a few hundred in one's pocket. So, a marginal investor can invest in gold and silver through the ETFs, which seems difficult for them in the retail physical market."

Key benefits of gold and silver ETFs include:

• High liquidity and ease of trading
• No depreciation concerns
• Absence of making charges during sales
• Lower entry barriers for small investors

Risk Considerations and Investment Strategies

Pankaj Mathpal, MD & CEO at Optima Money Managers, offered a cautious perspective on current market conditions: "Amid skyrocketing gold and silver prices, gold and silver rates today are oscillating around record highs. It would be highly risky to invest in gold and silver ETFs as they are already at a very high premium."

For risk management, Mathpal recommended different approaches based on investor risk appetite:

Recommended Investment Options

Experts have identified specific ETFs and mutual funds for investors considering precious metals exposure:

Gold ETFs:

• Nippon India ETF Gold BeES
• ICICI Prudential Gold ETF
• HDFC Gold ETF

Silver ETFs:

• ABSL Silver ETF
• ICICI Silver ETF
• Kotak Silver ETF

Mutual Funds:

• ICICI Prudential Regular Gold Savings Fund (FOF)
• HDFC Gold ETF FoF
• ICICI Prudential Silver ETF FOF
• Nippon India Silver ETF FOF
• Motilal Oswal Gold and Silver Passive FoF

The current rally in precious metals presents both opportunities and challenges for retail investors, with ETFs and mutual funds offering more accessible entry points compared to physical investments at these elevated price levels.

Gold has delivered impressive gains of over 11% in the opening weeks of 2026, driven primarily by strong financial investor flows rather than traditional physical demand patterns. Chintan Haria, Principal Investment Strategist at ICICI Prudential AMC, attributes this surge to sustained institutional interest and structural reallocation toward precious metals amid ongoing global political and macroeconomic uncertainty.

Strong Financial Flows Drive Performance

The precious metals sector has witnessed significant investor interest, with substantial fund inflows concentrated in gold and silver investments. Haria highlighted the magnitude of recent flows during his interaction with ET Now.

The investment strategist noted that this performance has naturally attracted momentum-driven investors. However, he observed a concerning trend where financial markets are now dominating physical markets, resulting in elevated premiums for financial gold products compared to physical gold prices.

Strategic Portfolio Case Remains Intact

Despite the recent rally, Haria maintains that gold retains its fundamental appeal as a portfolio diversifier. He outlined several structural factors supporting long-term gold allocation:

• Currency Concerns: Weakening trust in the US dollar due to elevated debt levels
• Historical Context: Gold underperformed for nearly a decade before recent resurgence
• Low Allocation: Average investor allocation remains at just 5-10%
• Diversification Value: Clear case for gold revaluation in current environment

The relatively modest allocation levels across investor portfolios suggest significant runway for strategic accumulation, according to the ICICI Prudential strategist.

Volatility Risks and Investment Approach

While maintaining a constructive outlook, Haria emphasized caution at current price levels. He noted that key supportive factors including US rate cut expectations, abundant global liquidity, and geopolitical uncertainty are already well-recognized and largely reflected in current valuations.

The strategist warned that investors should prepare for sharper price swings as gold continues its upward trajectory, emphasizing that risk management becomes increasingly important at these levels.

Investment Strategy Recommendations

Haria advised investors to approach gold as a strategic portfolio allocation rather than a momentum-driven trade. His recommendations focus on disciplined accumulation and risk-conscious positioning:

• Build gold exposure gradually rather than chasing recent performance
• Maintain focus on overall portfolio risk management
• View gold as long-term diversifier, not short-term speculation
• Prepare for increased volatility in future price movements

The investment strategist's guidance reflects a balanced approach that acknowledges gold's continued strategic value while recognizing the elevated risks associated with current price levels and increased financial market participation.