Bullion boom: Will gold hit $5,000 and silver touch $100 in 2026?
Gold and silver posted historic gains in 2025, driven by Fed rate expectations, a softer dollar, geopolitical tensions, industrial demand, and supply deficits. In 2026, gold could test $5,000/oz and silver $100/oz, supported by central bank buying, robust industrial use, and INR weakness. Investors are advised to maintain disciplined allocations, balance physical and paper holdings, and avoid chasing short-term spikes.
Gold and silver delivered an extraordinary performance in 2025, surging to multiple record highs on both global and Indian markets. Globally, gold climbed nearly 70%, breaking the $4,500/oz mark after surpassing $4,000 in October, while silver skyrocketed over 128%, topping $80/oz.
In India, the momentum was even more pronounced. MCX gold futures surged from around ₹75,000 to nearly ₹1,39,000–₹1,40,000 per 10 g, representing a rise of nearly 78%, while silver futures jumped approximately 144%, approaching the ₹2.5 lakh/kg mark. Domestic retail prices mirrored this trend, with both metals reaching historic highs amid safe-haven demand, robust industrial requirements, and a weakening rupee.
What supported gold and silver’s extraordinary gains in 2025?
Gold’s ascent was fuelled by a potent mix of macroeconomic forces and investor behaviour. Persistent expectations of U.S. Federal Reserve rate cuts lowered real yields, reducing the opportunity cost of holding non-yielding bullion. Simultaneously, the U.S. dollar softened, making gold more affordable for international buyers. Heightened geopolitical tensions, from Middle East conflicts to Venezuelan oil tanker blockades—fueled safe-haven demand. Sustained central bank purchases and record ETF inflows underpinned this rally, as institutions shifted reserves away from dollar assets toward bullion.
Silver outperformed with even greater brilliance, driven by both investment fervor and industrial demand. A structural supply deficit, now in its fifth consecutive year, tightened markets significantly. This shortage coincided with surging industrial usage in solar, EVs, electronics, and AI infrastructure, sending consumption to record highs. Meanwhile, silver’s official listing as a U.S. critical mineral, China’s strict export controls, and strong ETF inflows intensified the squeeze on available stocks. The combined impact of monetary easing, investor momentum, and real-world demand propelled precious metals to historic peaks.
Will gold move to $5,000 an ounce and silver to test $100 in 2026?
In 2026, gold may climb toward the $5,000/oz milestone. Major banks, Bank of America ($5,000), JP Morgan ($5,055), Goldman Sachs (~$4,900), and UBS (targeting $5,000 by Q3 and up to $5,400 in a bull case), forecast significant upside amid rate cuts, a soft dollar, central bank buying, and geopolitical risk. Survey data shows nearly 70% of institutional investors expect gold to rise, with 36% predicting it will breach $5,000 by the end of 2026.
Silver is not far behind, with strong momentum pointing toward a test of the $100/oz level. Technical breakouts, structural supply deficits, and surging green-tech and industrial demand are key drivers. While consensus forecasts cluster in the $70–90 range, multiple bullish scenarios envision silver reaching—or even exceeding—$100 if macro conditions remain favourable.