Gold and silver saw historic price rallies in 2025, reaching all-time highs. They not only gave exceptional returns but also outperformed most major asset classes, prompting investors to ask whether the momentum can extend into 2026.
Gold and silver saw a remarkable rise in 2025, driven by the uncertainty around the global economy and geopolitical risk.
India's gold price increased from about Rs. 71,500 per 10 grams at the start of the year to around Rs. 1.39 lakh at the end, an approximate gain of 80%.
Silver showed an even bigger gain, leaping more than 150% from roughly Rs. 90,500 per kilogram to above Rs. 2.35 lakh.
In the international market, gold went up almost 65% in 2025 and reached more than $4,500 per ounce at the peak. Silver also crossed significant limits and reached above $30 per ounce amid heavy demand from both the investment and industrial sectors.
A number of factors contributed to the rally. One of them was the tariffs imposed by President Donald Trump that led to concerns regarding inflation, making investors turn their attention towards gold as a safe haven.
Events in the Middle East and the war in Ukraine added to global uncertainty. Central banks also kept buying gold to reduce their dependence on the dollar for reserves.
At the same time, the interest rate cuts reduced the opportunity cost of holding non-yielding assets such as gold. The trade-related fears of inflation and a declining dollar backed up the precious metal's price increase.
Exchange-traded funds (ETFs) backed by physical gold saw continued inflows, with the total assets of the global gold ETFs reported to be just above $500 billion by late 2025.
Silver had strong industrial demand, rapid growth of solar power installations, electric vehicles, and a tightening of supply that led to its price increase.
Many financial institutions expect the price of gold to oscillate between $4,000 and $5,000 per ounce. Goldman Sachs has mentioned a target close to $4,900, citing the constant demand from investors and possible changes in the distribution of portfolios.
At the same time, State Street is predicting that the price of gold will be around $4,000-$4,500, but also warned of upside risks if the geopolitical or economic situation worsens.
The World Gold Council has four different scenarios, only one of which calls for declining gold prices. That's if economic growth triggers inflation, forcing the Fed to raise interest rates, and the dollar rises.
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According to experts, silver is expected to outperform gold in 2026. The analysts forecast the cost to be between $35 and $45 per ounce, with the support of supply shortages and the increase in green energy demand.
The rising demand for silver from the ETF and retail sectors may help drive price increases, as the metal is still viewed as an undervalued asset relative to gold.