Editor’s Note
This analysis highlights a potential divergence in precious metals, with gold poised for further gains while silver’s rally may face headwinds. Investors should monitor these contrasting dynamics closely.
In the upcoming future, gold prices are expected to see further gains. Meanwhile, there are signs of a brake being applied to silver prices.
Even in the new year, the bullion market shows no signs of stopping its rally. Gold and silver are setting new records every day. If you are among the investors who were happy seeing the rally in 2025, now is the time to be cautious. You will have to change your strategy. In fact, over the past 12 months, silver has delivered a record-breaking profit of nearly 200%. Meanwhile, gold has also made investors rich by delivering a stellar return of 80%. But now, a fresh report from leading brokerage house Motilal Oswal on gold and silver has come out, indicating a potential halt in silver’s rally, while gold is set to continue its bull run.
To understand this changing direction of the market, it is first essential for you to understand the ratio between gold and silver (Gold Silver Ratio). This ratio tells us how many kilograms of silver would be needed to buy one tola of gold. Looking at history, during the Corona pandemic, this ratio was at a peak of 127, which decreased to 70 at the beginning of 2026 and has now come down to around 50.
According to Navneet Damani, an analyst at domestic brokerage firm Motilal Oswal.
Currently, gold and silver are trading at their record levels on the Multi Commodity Exchange (MCX). On Friday, 23rd January, gold with February contract expiry reached a new peak of ₹1,59,000 per 10 grams, while silver with March contract expiry reached a price of ₹3,39,927 per kilogram. After this rally, the market now fears profit booking or a correction. The recent volatility in silver prices has increased investors’ tension. Meanwhile, more stability is being seen in gold. In such a scenario, investors are being advised to increase the value of gold in their portfolio to reduce risk.