Gold prices in India recorded a modest uptick at the start of the new year after a brief three-day decline, according to a market survey and local trading on 1 January. Ten prominent analysts surveyed by Economic Times forecast that gold will continue to rise, while many expect silver to deliver stronger returns over the coming months.
India gold prices show modest gains in regional markets
In Mangalore, morning trade on Thursday, 1 January, saw 24-carat gold at Rs 13,506 per gram, up Rs 17. Twenty-two carat measured Rs 12,380 per gram, up Rs 15, and 18-carat was quoted at Rs 10,129 per gram, up Rs 12. In Bengaluru, 10 grams of 24-carat gold was priced at Rs 1,34,880, 22-carat at Rs 1,23,640, and 18-carat at Rs 1,01,160.
The market mood reflects a mix of short-term trading and longer-term expectations. Analysts said recent weakness was limited and that the new-year rise points to renewed interest from investors and bullion buyers. While gold remains attractive as a safe-haven asset, many analysts highlighted silver as a potential outperformer in 2026.
Analysts favour silver but gold remains supported
Economic Times’ survey of ten senior analysts found that around 80 per cent expect silver to outperform gold during the year. About 60 per cent of the experts believe international silver prices could rise by roughly $100 an ounce from current levels, representing a near 40 per cent increase. Some analysts see the possibility of silver hitting $110 an ounce if demand strengthens further.
Those projections, if realised, would represent record gains for silver and would likely draw additional investor interest into precious metals as a whole. Analysts warned, however, that commodity markets remain sensitive to macroeconomic shifts, including interest rate decisions and global liquidity conditions.
Central banks and investment caution
Another factor cited by market observers is the role of central bank reserves. Continued accumulation of gold by central banks has added a structural bid to the market, supporting prices even during episodes of short-term profit-taking. Analysts said central-bank buying could sustain upward pressure on gold if the trend continues.
Despite the bullish signals, experts urged investors to exercise caution. Volatility in currency markets, changes in interest rates, and geopolitical developments can all affect precious metal valuations. Investors are advised to consider their time horizon and risk tolerance before increasing exposure.
For consumers and small investors in India, the immediate impact is visible in retail rates. Local shop quotes and trade platforms showed small gains on the first trading session of the year, signalling steady demand for both jewellery and investment bars and coins.
Market watchers said they will monitor industrial demand for silver, which could drive further price gains, and central-bank reserve trends, which remain an influential supply-side factor for gold. Both developments will be important determinants of precious-metal performance through 2026.
Key Takeaways:
- Ten leading analysts expect further gains in gold prices, while most favour silver to outperform this year.
- Central bank reserve buying is cited as a supportive factor for higher gold prices.
- Local markets in Mangalore and Bengaluru recorded modest per-gram and per-10g increases on 1 January.
