MUMBAI: Despite the precious metals scaling new highs in global markets with gold crossing the USD 4,900/oz-mark in early trade on the CME and trading at USD 4,960.50 at 0845 hrs IST Friday, and the white metal scaling sniffing at USD 100 or an ounce (28.35 grams) trading at USD 99.19/oz, logging an intraday gain of around 2.50%, the domestic prices on the MCX did not reflect an equivalent rally but still trading at new high.
Both metals are on course to hit the USD 5,000 and USD 100/oz mark anytime from now having already rallied more than 30% and 37% respectively.
While gold February futures are commanding Rs 157,332/10 grams, up Rs 991 or 0.63% at 1000 hrs, March silver was fetching Rs 3,33,100/kg or Rs 5,811 or 0 1.78% over Thursday’s closing price.
The renewed rally is surprising as the global turmoil over the Greenland has been discounted after the Trump climb-down in Davos Thursday and a resolution to the Ukraine war looks more realistic than even with the first-ever trilateral meeting between the warring nations and the US are scheduled for Friday in the UAE.
This has some analysts cautioning investors and jewellery buyers about a speculative price ramp-up. The new rally also comes a day after silver ETFs crashing by up to 24% yesterday morning trade but recovered to large extent later in the day.
Jefferies has predicted gold prices at to scale to USD 6,600 per ounce this year, UBS has its target at USD 5,400; JP Morgan at USD 5,050; and BofA and ANZ at USD 5,000 each. But their early 20226 targets have already been met in the first three weeks of the year.
No known global brokerages have given a target for silver yet, as the price rally is driven by supply shortages and industrial demand from solar panels industry. The white metal had more than trebled in 2025 having began the year around USD 20/oz and ending the year at over USD 83 while the yellow metal had given 81% return in the year on the back of a 24% rally in 2024 and another 22% in 2023.