Amidst widespread global economic turbulence and trade tensions, gold and silver are expected to continue shining brightly in the upcoming financial year specifically 2026-27. Experts believe that while the prices of these precious metals will certainly rise during this period, the likelihood of a massive, sudden surge remains low. The primary drivers behind this trend are the looming fear of a global recession and the increasing demand for gold as a ‘safe-haven’ asset.
What Does The Recent Track Record Show?
The financial year 2025-26 proved to be a historic period for precious metals. A look at the statistics reveals:
Silver : On April 1, 2025, the price of silver stood at ₹99,461 per kilogram, eventually climbing to ₹1,41,431. This represents a massive surge of 142.2%.
Gold : Gold prices also witnessed a tremendous upward trajectory. Starting at ₹90,503 per 10 grams, prices surged by 67%.
Major factors driving this record-breaking rally included the U.S. administration’s tariff wars, geopolitical tensions, heavy purchasing by central banks, and supply shortages in the market.
What Is The Forecast For 2026-27?
According to Aamir Makda, an expert at Choice Broking, the outlook for gold and silver in the upcoming financial year is expected to remain ‘moderately positive’ (or moderately bullish).
Given that the global economy is currently navigating through geopolitical tensions and fears of a recession, investors are expected to turn toward gold and silver as safe avenues for investment. However, the decision by the US Federal Reserve and other central banks to maintain high interest rates could curb any rapid surge in prices.
Why Might Silver Witness A Significant Shift?
The narrative behind the surge in silver prices differs slightly from that of gold. Three key factors underpinned silver’s stellar performance last year:
Supply Shortage : For the past five years, the supply of silver has lagged behind demand.
Industrial Demand : Silver is currently witnessing record consumption in the solar photovoltaic and electric vehicle (EV) sectors.
Institutional Investment : Growing interest from major investors in ETFs has provided support to prices.
It is projected that during the financial year 2026-27, silver prices in the domestic market could range between ₹2.75 lakh and ₹3.5 lakh per kilogram.
A Warning Regarding Market Volatility
Although gold and silver appear poised for an upward trend in the long term, the market also witnessed a significant ‘correction’ (decline) towards the end of March 2026. In the month of March alone, gold prices tumbled by ₹11,343 (7%), while silver plummeted by ₹41,752 (15%).
Experts suggest that when geopolitical conflicts enter a secondary phase and the strengthening of the US dollar begins to subside, demand for gold typically witnesses a renewed surge.
Overall, while intermittent volatility is to be expected throughout 2026-27, continued buying by central banks and robust industrial consumption are expected to continue providing underlying strength to gold and silver prices.
