Gold and silver prices witnessed significant gains in Delhi markets on Friday, with both precious metals surging amid firm trends in international markets. The rally reflects broader global momentum driven by multiple economic and geopolitical factors.

Domestic Market Performance

Gold prices climbed substantially in the national capital, registering strong gains across trading sessions. Silver also demonstrated robust performance, marking notable increases for investors and traders.

Note: Silver prices are inclusive of all taxes

International Market Trends

Global precious metals markets showed strong momentum, with both gold and silver posting significant gains in overseas trading. The international performance provided the foundation for domestic market strength.

Market Analysis and Outlook

Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, noted that spot gold is trading with gains of over 1% at $4,390. He explained that while the move lacks any clear immediate catalyst, the rationale could be rate cut expectations by the US Federal Reserve and an optimistic outlook for the metal.

For the near-term outlook, Singh projected that gold is expected to range trade between $4,250-4,335 per ounce, ahead of key US economic data releases. Important reports scheduled for next week include:

• ISM manufacturing data
• ISM non-manufacturing report
• Non-farm payroll report

Silver Market Dynamics

Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, highlighted that silver prices in the global market started 2026 on a positive note on Friday, following their strongest annual increases in over four decades in 2025. He identified several factors supporting the upward trend:

• Ongoing geopolitical uncertainty
• Expectations of lower US borrowing costs
• Firm dollar performance

Gandhi also noted that the US has imposed tighter restrictions on Venezuela's oil exports, while renewed hostilities between Russia and Ukraine over the New Year have continued to bolster safe-haven demand for precious metals.

Market Implications

The substantial gains in both gold and silver reflect broader market sentiment favoring safe-haven assets amid global uncertainties. The combination of monetary policy expectations, geopolitical tensions, and strong annual performance in 2025 has created a supportive environment for precious metals trading. Investors and traders are closely monitoring upcoming US economic indicators for further direction in the precious metals complex.

Following a remarkable year for precious metals in 2025, investment strategists are mapping out allocation approaches for gold and silver in 2026. Silver delivered an exceptional 170% return during 2025, while gold posted strong gains of 76.5%, setting the stage for strategic portfolio considerations in the new year.

Market Performance and Outlook Drivers

The precious metals rally has positioned both assets as key portfolio components, though their roles differ significantly. According to Ross Maxwell, Global Strategy Operations Lead at VT Markets, the gold versus silver debate in 2026 will largely depend on whether global markets prioritize growth or stability.

Gold's support factors include interest rate expectations, elevated government debt levels, and geopolitical tensions. Maxwell notes that any move toward lower real interest rates would reduce the opportunity cost of holding gold, while persistent fiscal imbalances could undermine confidence in fiat currencies.

Central Bank Policy Impact

Central bank policies emerge as a major influence for 2026. Rate cuts or a slowdown in quantitative tightening could push real yields lower and support gold prices further. Conversely, if real yields remain high and monetary policy stays credible, gold's price action could shift to a range-bound trajectory.

Jigar Trivedi, Senior Research Analyst at Reliance Securities, highlighted key gold drivers including strong safe-haven demand during geopolitical risk episodes, robust central bank net purchases particularly in Asia, and trends in inflation hedging and de-dollarization.

Silver's Industrial Advantage

Silver continues to carry higher volatility due to its strong connection to industrial demand across manufacturing, electronics, and clean energy sectors. This industrial exposure gives silver more aggressive upside potential during strong economic growth or reflationary periods, but also exposes it to sharper corrections during slowdowns.

Trivedi expects silver to benefit from investment demand growth and speculative flows, including ETFs, while noting that silver "historically displays higher volatility due to industrial and investment duality."

Strategic Allocation Recommendations

From a portfolio allocation perspective, both metals serve valuable but distinct roles. Gold functions as a defensive asset offering consistency, stability, and long-term wealth preservation. Silver takes on a more tactical nature, providing higher upside potential at the cost of greater volatility.

Maxwell emphasizes that "for 2026, gold remains better suited for risk management and portfolio protection, while silver may appeal to investors with a higher risk tolerance seeking growth-linked exposure."

The emerging expert consensus suggests investors may benefit from owning both metals, treating gold as a hedge and silver as a growth play. A suggested allocation strategy involves a 60:40 split favoring gold, acknowledging its macro support while maintaining room for silver's growth-linked exposure.

Key Macro Themes for 2026

Several macro themes are expected to shape the precious metals outlook:

• Monetary policy and real yields evolution
• Geopolitical risk developments
• Industrial growth linked to green transition
• Post-2025 market psychology shifts

In this dynamic environment, precious metals are expected to continue playing crucial roles in diversified investment portfolios, with the balance between gold and silver depending on individual risk tolerance and market outlook preferences.