Precious Metals Poised for Moderate Bullish Trend Amid Geopolitical Tensions

Precious metal prices are expected to be moderately bullish in FY 2026-27 due to geopolitical tensions, trade war fears, and recession risks. Silver prices surged by 142.2% in FY26, while gold rose by 67%. Despite strong gains, higher interest rates might limit sharp increases. Demand for safe-haven assets remains strong.

Precious metal prices in domestic markets are anticipated to experience a moderate bullish phase in the fiscal year 2026-27. This outlook is driven by heightened geopolitical tensions, trade war fears, and growing recession risks, which are likely to bolster demand for safe-haven assets.

In the fiscal year 2026, silver futures surged dramatically by 142.2%, with prices climbing from Rs 99,461 per kg to Rs 1,41,431 per kg. Meanwhile, gold saw a significant rise of 67%, moving from Rs 90,503 per 10 grams to Rs 1,50,761 per 10 grams. Despite these gains, corrections were noted towards the fiscal year's end.

Aamir Makda, a Commodity & Currency Analyst, notes that although geopolitical risks and central bank demand will support bullion prices, factors such as higher interest rates may cap potential upside. Silver's exceptional performance is attributed to supply deficits and increased industrial demand. Looking ahead, prices for both metals are expected to remain resilient, supported by ongoing geopolitical and economic uncertainties.

(With inputs from agencies.)