Gold May Cross ₹1.50 Lakh, Silver Could Surge Past ₹3 Lakh by 2026: Expert Predicts Strong Bull Run
Gold and silver prices are showing strong bullish signals in the global bullion market, with experts forecasting a sharp rally over the next two years. According to market specialists, silver could cross the ₹3 lakh per kilogram mark in India, while gold prices may rise beyond ₹1.50 lakh per 10 grams by 2026. The rally is being driven by structural changes in the bullion market rather than short-term speculation.
Surendra Mehta, Secretary of the India Bullion and Jewellers Association (IBJA), believes that silver and gold are entering a strong long-term uptrend. He estimates that by 2026, silver prices could trade in the range of $95 to $100 per ounce globally, up from the current levels of around $72 per ounce. Similarly, gold prices may rise to $4,900–$5,100 per ounce, compared to the present level of approximately $4,480 per ounce.
Based on these projections, silver could see a jump of 30 to 40 percent, while gold may gain 10 to 14 percent over the next two years.
What This Means for Gold and Silver Prices in India
In the Indian market, silver is currently trading at around ₹2.23 lakh per kilogram on the Multi Commodity Exchange (MCX). If prices rise by 40 percent, as projected, silver could reach nearly ₹3.12 lakh per kilogram. Gold, which is currently priced at around ₹1.38 lakh per 10 grams, could climb to approximately ₹1.57 lakh per 10 grams if it records a 14 percent increase.
Such levels would mark new all-time highs for both precious metals in the domestic market.
Why Silver Prices Are Rising So Rapidly
According to Mehta, the ongoing rally in silver is not driven by short-term enthusiasm but by fundamental shifts in the market. One of the key reasons behind the sharp rise is the increase in silver lease rates, which in some cases have surged to 23–24 percent. High lease rates indicate tight supply conditions in the physical market, creating upward pressure on prices.
Another major factor supporting silver prices is the shift from paper silver to physical silver. Banks, institutional investors, and fund houses are gradually reducing exposure to paper-based instruments and increasing holdings of physical silver. This shift has significantly strengthened demand in the physical market, adding further momentum to the rally.
Supply Constraints Supporting the Rally
Limited availability of silver in the physical market has played a crucial role in sustaining the price surge. When supply remains tight and demand continues to grow, prices tend to remain under upward pressure. Experts believe this imbalance is unlikely to ease quickly, which could keep silver prices elevated over the medium to long term.
The pace of the rally has been remarkable. On November 21, silver was trading at around $49 per ounce. Within a month, prices jumped to nearly $73 per ounce, marking a rise of over 50 percent in a very short period. Such rapid gains naturally increase market volatility.
Mehta cautions that during strong bull phases, corrections of 18–20 percent are common and should not be viewed as a trend reversal. Instead, such pullbacks are considered a normal part of a broader bull cycle.
Gold Outlook Remains Positive Despite Short-Term Corrections
While silver has been leading the rally, gold’s outlook also remains optimistic. Mehta expects that gold could witness a short-term correction of 9–10 percent due to profit booking or market volatility. However, from a long-term perspective, he believes gold prices could still rise to the $4,900–$5,100 per ounce range by 2026.
Gold continues to benefit from its status as a safe-haven asset, especially amid global economic uncertainty, geopolitical tensions, and currency volatility. Central bank buying and sustained investor interest are also supporting long-term price strength.
What Should Investors Do?
Experts advise investors to remain focused on the long-term trend rather than reacting to short-term price swings. Both gold and silver are inherently volatile commodities, and interim corrections are part of their natural price movement.
Mehta suggests that investors should not panic during temporary declines but instead view them in the context of a larger bullish cycle. The current rally, he says, is supported by strong fundamentals such as supply constraints, rising physical demand, and structural changes in global bullion markets.
Final Takeaway
If current trends continue, 2026 could turn out to be a landmark year for precious metals, with silver potentially crossing ₹3 lakh per kilogram and gold moving beyond ₹1.50 lakh per 10 grams in India. While short-term volatility is inevitable, the long-term outlook for both metals remains strong.
As always, investors are advised to assess their risk appetite and consult certified financial experts before making investment decisions, as commodity markets can be unpredictable despite strong underlying fundamentals.
