CHENNAI: Gold, silver and platinum witnessed mixed and largely range-bound trading during the week from December 29, 2025 to January 2, 2026, as investors balanced year-end positioning with cautious optimism at the start of the new calendar year. Thin holiday volumes, shifting expectations around global interest rates and a steady US dollar shaped price action across precious metals, keeping sharp moves largely in check.
Gold traded with a mild positive bias through the week, supported by safe-haven demand and expectations that major central banks may turn more accommodative later in 2026. However, gains were capped as the US dollar remained relatively firm and bond yields showed limited softening, reducing the immediate appeal of non-yielding assets. The yellow metal saw some profit booking toward the end of the week as risk appetite improved in equity markets, but overall managed to hold on to its weekly gains, reflecting lingering caution among investors amid geopolitical and macroeconomic uncertainties.
Silver followed a more volatile path, oscillating between industrial demand optimism and pressure from subdued manufacturing signals in key global economies. The metal underperformed gold for most of the week, weighed down by concerns over the pace of global growth and muted industrial activity. While silver did see brief rebounds alongside gold during risk-off phases, the upside remained limited as traders stayed selective and refrained from building aggressive long positions ahead of clearer cues on economic momentum in the new year.
Platinum largely underperformed both gold and silver during the week, reflecting continued uncertainty around demand from the automotive sector, particularly in relation to emission-related catalyst usage. Trading remained subdued, with prices struggling to gain traction amid weak sentiment and limited fresh triggers. While some support emerged from supply-side considerations and bargain buying at lower levels, it was insufficient to drive a sustained recovery, leaving platinum largely range-bound to marginally lower over the week.
Precious metals markets remained cautious as the transition into 2026 unfolded, say analysts.
"Holiday-thinned participation, stable currency movements and mixed signals from global growth indicators kept gold, silver and platinum confined to narrow ranges. As the new year begins in earnest, market participants are likely to look for clearer signals from inflation trends, central bank communication and industrial demand indicators to determine the next directional move across the precious metals complex," said a latest commodity market report.
According to brokerage Enrich Money, gold and silver have entered 2026 with elevated volatility following an exceptional 2025 rally -- gold surged nearly 66%, surpassing $4,500 per ounce, while silver outperformed with a 171% rise, fueled by safe-haven demand, aggressive central-bank buying, and mounting industrial supply shortages. Recent sharp corrections—gold easing from $4,375 and silver falling from $83.62 to $71.77—were largely driven by profit-taking and margin hikes. Importantly, these declines quickly attracted buying interest, supported by renewed expectations of Fed rate cuts, ongoing geopolitical risks, and sustained demand for real assets.
Looking ahead, the fundamental outlook for precious metals remains constructive. Gold is expected to deliver steady, albeit moderated, gains, with potential to approach $5,000 amid easing monetary conditions, continued ETF inflows, and heightened global risk-hedging demand. Silver’s long-term structure appears even stronger, supported by persistent supply deficits and accelerating demand from solar, EV, AI, and electronics sectors, although near-term volatility from dollar strength cannot be ruled out, said R Ponmudi, CEO, Enrich Money.