Silver’s stellar run may cool in 2026, pullbacks offer better entry points: Saif Mukadam
Silver may see intermittent corrections in 2026 despite strong long-term fundamentals, with Saif Mukadam advising caution on current investment levels. Gold is expected to outperform silver, while oil prices are likely to remain under pressure due to a supply surplus. Copper's structural story remains intact, but patience is needed for entry, and aluminium stands out among base metals.
Silver, which emerged as one of the strongest-performing commodities last year, may see intermittent corrections in 2026 even as its long-term fundamentals remain intact, said Saif Mukadam from ICICI Direct in an interview with ET Now.
Responding to a question on whether silver’s sharp momentum could sustain after last year’s surge, Mukadam noted that prices had already delivered an eye-catching rally.
“We saw an eye-catching rally in 2025. Silver prices moved higher by almost 140% in 2025. The question now is how it is going to perform in 2026,” Mukadam said.
While he expects the broader structural trend to remain positive, Mukadam cautioned that current levels may not be conducive for fresh investments.
“Structurally or fundamentally, silver prices should move on the upside, but as prices have moved drastically, the current levels are not supportive. The risk-reward ratio is not favourable, and we could see a pullback,” he said.
Mukadam sees major support for spot silver near $55, while on the upside prices could rise to $90 in 2026. On the MCX, he expects support in the ₹1,50,000–₹1,65,000 range, with upside potential extending to ₹2,75,000.
He highlighted policy risks and industrial demand trends as key drivers. “Silver has been included in the critical minerals list by the U.S., which raises concerns that tariffs could be imposed. Structural demand from industries remains intact—from solar PV, electronics, AI chips and data centre cooling,” he said.
Although industrial demand flattened in 2025 after several years of strong growth, Mukadam believes long-term prospects remain favourable. “Short-term pullbacks should be used as buying opportunities,” he added.
Gold Could Outperform Silver in 2026
On gold, Mukadam expects relative outperformance this year after lagging silver in 2025.
“Silver rose 140%, whereas gold rallied only around 60% to 65%. The fundamentals for gold are structurally very supportive,” he said, pointing to central bank buying, de-dollarisation, fiscal worries and expectations of multiple U.S. Federal Reserve rate cuts in 2026.
Gold’s role as a hedge amid geopolitical uncertainty also remains intact. “Gold will continue to be used as a hedge against trade and geopolitical uncertainties, whether it is the Middle East or recent developments in Venezuela,” he said.
However, Mukadam echoed a similar caution on near-term entry points. On MCX, he sees support near ₹1,12,000, with upside potential of ₹1,55,000–₹1,60,000. Spot gold could find support around $3,500–$3,600, while upside could extend to $4,800–$5,000.
“At current levels, the risk-reward ratio is not favourable. Investors should wait for a pullback before accumulating gold,” he advised.
Oil Likely to Remain Under Pressure Amid Supply Surplus Crude oil prices are expected to stay under pressure in 2026 as global supply rises, Mukadam said.