Gold and silver prices continue their relentless climb with global uncertainty providing strong support for the precious metals rally. Surendra Mehta, Secretary of the India Bullion and Jewellers Association, projects ambitious price targets driven by a combination of geopolitical tensions and policy-related concerns.

Bullish Price Projections

Mehta has set clear targets for both precious metals, expressing confidence in their continued upward momentum. His analysis points to multiple factors supporting these projections, including regional tensions and economic uncertainties.

Key Market Drivers

The precious metals rally stems from multiple global factors creating sustained demand pressure. Mehta identifies rising tensions in Iran, Venezuela, and Greenland as primary geopolitical catalysts. Additional support comes from weak and mixed US job data, higher planned tariffs by the US government, and recent politically sensitive developments related to the US Federal Reserve.

Gold is attracting significant buying interest through exchange-traded funds, including strong inflows from India. Silver demonstrates heavy physical demand across global markets, particularly in China and Dubai, where supply tightness is evident through premium pricing.

Regional Premium Indicators

Global silver markets are showing clear signs of supply constraints through premium pricing in key trading hubs:

Indian Market Dynamics

Domestic Indian prices reflect the global strength in precious metals, with significant premiums over international benchmarks. MCX gold trades approximately ₹1,200.00 higher than global levels, while silver commands nearly ₹6,000.00 premium. In dollar terms, gold shows strength of around $40.00, with silver up $2.50-3.00 compared to global benchmarks.

Mehta emphasizes that India remains a price taker rather than price discoverer in global gold and silver markets, limiting the country's influence on international pricing dynamics.

Market Outlook and Strategy

Mehta does not anticipate sharp corrections in precious metals prices, suggesting any pullbacks will be limited. He advises that short-term price dips should be viewed as buying opportunities rather than selling triggers. The expert believes meaningful price cooling requires clarity on US policy direction, while China's restrictions on silver exports and Russia's stance on oil and gold holdings maintain supply-side concerns.

According to Mehta, precious metals will likely remain firm as long as major global powers including China, Russia, and the US fail to find common ground on key economic and geopolitical issues. This fundamental backdrop supports his bullish outlook and reinforces the strategic value of treating market dips as accumulation opportunities.

Silver prices surged to unprecedented levels on Monday, January 12, with the precious metal reaching a record high of $84.61 per ounce, marking a nearly 6% gain for the day. The rally extended to Indian markets, where MCX silver prices jumped 5% to ₹2.65 lakh per kg, reflecting the global momentum in the white metal.

Kiyosaki's Bullish Silver Outlook

Rich Dad Poor Dad author Robert Kiyosaki reinforced his bullish stance on silver despite the record-breaking prices. In a social media post on X, Kiyosaki addressed investor concerns about timing, stating "Is it too late to buy silver? I say 'No.'" The renowned financial educator indicated his willingness to continue purchasing the precious metal until it reaches $100 per ounce.

Kiyosaki emphasized disciplined investing by referencing the well-known adage: "Pigs get fat. Hogs get slaughtered," highlighting the importance of measured profit-booking over greed-driven risk-taking. His current recommendations build on earlier forecasts when silver had climbed above $72 per ounce, which he described as "great news for gold and silver stackers" while cautioning it was "bad news for fake money savers."

Market Drivers and Federal Reserve Impact

The silver surge gained additional momentum following developments involving the US Federal Reserve. Fed Chair Jerome Powell revealed that the central bank had received grand jury subpoenas from the Justice Department regarding his June congressional testimony on the Fed's headquarters renovation, according to Bloomberg reports. This news contributed to pushing the US dollar off its one-month high early Monday.

The weakening dollar makes precious metals more affordable for buyers using other currencies, providing additional support for silver's upward trajectory.

Industrial Demand and Technical Analysis

Silver's remarkable performance has been underpinned by robust industrial demand across multiple sectors. The white metal had already soared almost 150% in the previous year following a historic short squeeze in October, with tariff concerns restricting metal movement from heavily stocked US warehouses.

Ponmudi R, CEO of Enrich Money, provided technical insights on the current market dynamics: "COMEX Silver is trading firm near $83, after marking a lifetime high, and remains well above its short- and medium-term moving averages following a decisive breakout from consolidation."

Key Demand Drivers:

• Solar energy sector expansion
• Electric vehicle manufacturing growth
• Artificial intelligence hardware requirements
• Electronics industry consumption
• Sustained safe-haven investment flows

Price Projections and Support Levels

Market analysts suggest the current momentum remains buyer-driven with strong technical indicators. While the $83 zone may experience periodic profit-taking, a clear breakout above $85 could trigger further gains toward the $90-$95 range.

The strong industrial demand fundamentals continue to underpin the $78-$80 zone as a solid support base, providing confidence for investors considering entry points in the precious metals market.