Since the beginning of 2026, silver has experienced a significant price increase, attracting keen interest from investors in India. The metal commenced the year on a robust upward trend, driven by ongoing supply shortages and rising industrial demand. According to 1 Finance Research, silver recorded an impressive 122% rise in 2025, attributed to a fifth consecutive year of supply deficits coupled with heightened consumption in various sectors, notably solar energy and electronics. However, silver has now entered a consolidation phase, prompting investors to assess market conditions as prices stabilize following last year’s rapid gains. As of February 27, silver was traded at ₹267,631, marking an increase of ₹8,031 or 3.09%, indicating that although momentum persists, the market is currently taking a breather. During the same period, gold maintained its position at ₹160,375, with a slight increase of ₹666 or 0.42%.

Market Correction and Long-term Outlook

Ponmudi R, CEO of Enrich Money, commented that COMEX Silver is fluctuating around $85 to $90 after experiencing a retreat from peaks above $121. Despite this correction, the longer-term bullish structure remains intact. Notably, a strong buying interest is evident within the $70 to $75 support range. A sustained price recovery above the $92 to $96 range may reinstate upward momentum towards the levels of $100 to $105. The fundamentals of industrial demand along with supply constraints continue to bolster the medium- to long-term outlook, although short-term fluctuations are expected to persist. Furthermore, MCX Silver futures are trading within the ₹2,50,000 to ₹2,60,000 band following recent consolidation. While the broader long-term bullish sentiment persists, immediate price movements reflect a corrective phase. Significant structural support is identified at ₹2,25,000 to ₹2,35,000. A consistent hold above this zone could potentially lead towards the medium-term targets of ₹3,00,000 to ₹3,25,000. Conversely, a decisive break below this support could amplify short-term pressures.

Trends in Precious Metals

The trends within precious metals have presented uneven patterns, as indicated by data from 1 Finance Research. Gold has maintained its gains across several structural supports, while silver has seen sharper surges driven by tightening supply and increasing industrial demand. The outlook for silver in 2026 is considered neutral with a risk rating of 35. Positive influences include ongoing multi-year supply deficits, heightened industrial demand in solar and electronics, and supply constraints from China. In contrast, risks include a stronger US dollar along with potential profit-taking following last year’s exceptional gain of 122%. Animesh Hardia, Senior Vice President of Quantitative Research at 1 Finance, highlighted that while 2025 rewarded those who followed market narratives, 2026 presents a different scenario. He noted that interest rate cuts are decelerating, geopolitical risks are recurring rather than isolated, and India is at a pivotal point in its economic trajectory. Investors who successfully navigate this year will likely be those who understand the current macroeconomic phase and adjust their strategies accordingly. The data suggests that India is transitioning from a slowdown to recovery, and timely asset allocation will be crucial.

Implications for Investors

The ongoing consolidation of silver prices suggests a pause in movement following the previous year’s substantial gains. While short-term volatility is anticipated to persist, the medium- and long-term outlook for silver remains optimistic, underpinned by continued supply constraints and robust industrial demand. Maintaining prices above critical support levels could enable silver to regain upward momentum, whereas a decline below these levels may intensify immediate market pressures. Additionally, comprehending India’s broader economic recovery and aligning investment strategies accordingly will be essential for making informed decisions in 2026.

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