New Delhi, Dec 28 (PTI) Gold and silver are likely to hold their ground next week, as traders are awaiting meeting minutes of US Federal Reserve's FOMC, which will provide cues on the monetary policy outlook, analysts said.
Though trading activity will remain subdued next week, with only a few key economic releases lined up, including November's pending home sales and meeting minutes from December's Federal Open Market Committee on Tuesday, which will steer bullion prices.
Gold and silver prices are likely to maintain their upward momentum in 2026, driven by prospects of global rate cuts, safe-haven appeal and firm industrial demand, however, traders may turn cautious as the pace of gains may moderate after an exceptional 2025, they added.
On the Multi Commodity Exchange (MCX), gold futures gained by Rs 5,677, or 4.23 per cent, during the week to touch an lifetime high of Rs 1,40,465 per 10 grams on Friday.
"On the technical front, after a staggering rally of 2025, we don't expect similar returns in 2026. But the current moment may push up prices towards USD 5,000-5,200 and Rs 1,50,000-1,55,000 on the MCX in 2026," Pranav Mer, Vice President, EBG, Commodity & Currency Research, JM Financial Services Ltd, said.
He added that underlying factors for the rally such as monetary policy easing, de-dollarisation, and global trade tensions will continue to dominate in 2026.
"Bank of Japan's rate hikes, escalation in the global trade war as more countries may join in with import restrictions by levying tariffs and economic activity in the US and China will be closely tracked," Mer said.
In the international markets, gold prices climbed by USD 165.4, or 3.77 per cent, during the past week. It had touched a lifetime high of USD 4,584 per ounce on the Comex, ending the holiday-shortened week with strong gains.
Mer noted that central bank purchases of gold have slowed as compared to the previous three years, however, buying remains steady, buoyed by portfolio diverification and currency concerns with expectation of more rate cuts.
Prathamesh Mallya, DVP - Research, Non-Agri Commodities and Currencies, Angel One, said easing interest rates by the US Federal Reserve and anticipation of further rate cuts have made gold and silver more attractive in 2025.
"These assets also benefitted from safe-haven flows on account of the uncertainty created by US President Donald Trump's tariff policies, and the ongoing Russia-Ukraine war," he added.
Mallya expects gold prices to move higher towards Rs 1,60,000 per 10 grams on the commodities bourse in the first half of 2026.
Silver futures, too, witnessed a spectacular week, reflecting industrial and investment demand. On the MCX, the white metal soared Rs 31,348, or 15.04 per cent, in a holiday-shortened week.
It had zoomed Rs 18,210, or 8.14 per cent, to a new record of Rs 2,42,000 per kg on Friday.
On the Comex, silver prices gained USD 9.71, or 14.4 per cent in the past week, touching a lifetime high of USD 79.70 per ounce in overseas trade.
"Silver is supported by strong industrial demand from new-age sectors, relatively cheap pricing compared to gold, and a sharp rally in the industrial metals after Trump's tariff announcement in April 2025," Pranav Mer of JM Financial Services, said.
Analysts said silver prices may move higher towards Rs 2,75,000 per kilogram on the MCX and USD 80-85 per ounce globally, due to global supplies constraints.
China is the world's largest consumer of silver and a leading producer of solar panels, electronics and EVs, has announced export restrictions from January 1, 2026, requiring companies to obtain licences, a move expected to remain in place through 2027, and disrupt global supply chains.
Analysts added that the precious metal are poised to stay firm in 2026, with rate cuts, global trade tensions and industrial demand keeping bullion prices in focus.