Gold Gains 61 PC, Silver 128 PC To Become Top Performers in FY26
Bullion shines as a safe haven during war, trade tensions and rate shifts
Chennai: Despite the recent correction, gold prices moved up 61 per cent in FY26, while silver gained 128 per cent, making the bullion the top performer in the financial year.
FY 2026 was marked by heightened trade uncertainties, geopolitical and geo-economic tensions, which saw investors seeking refuge in safe-haven assets.
Gold prices in the Multi Commodity Exchange moved up from Rs 91,316 per 10 gm in the beginning of the year to Rs 1,47,450 per 10 gm at the end of the it, appreciating 61.47 per cent. During the year, it made a peak of Rs 1,80,779 per 10 gm in January, gaining 97.97 per cent from the April levels. It corrected 18.4 per cent in the subsequent months.
In the international market, gold moved up from $3124 per ounce to $5597 in January and corrected to $4559 an ounce by the end of the fiscal.
Silver was the best performer among asset classes as it moved from Rs 1,00398 per kg to Rs 4,20,048 per kg by January, gaining 318 per cent. Silver too witnessed a fall of 45 per cent since then and ended at Rs 2,29,000, ending with a gain of 128 per cent.
In the international market, silver shot up from $34.08 per ounce to $121.67 in January and then to $72.77 by March-end.
“In the first quarter of the fiscal year, bullion made modest gains. But since July, there has been a steady upward movement as the trade tariffs roiled the globe, the Ukraine war continued unabated, and the US Federal Reserve cut interest rates. The fundamentals, like central bank buying and de-dollarization too supported gold and silver,” said Ajay Kedia, MD, Kedia Commodities.
However, when the Iran war started, all the asset classes went into shock, and that hit bullion as well. The margin calls in equity and other asset classes forced investors to liquidate gold and silver and cover open positions. However, the bullion continued to slide as investors accumulated dollars to buy crude that was becoming pricier. Further, the US Federal Reserve decided to increase interest rates to fight inflation. This also supported the US dollar.
“Once the war eases and crude stabilises, investors will return to gold and silver, and then we will see a rebound in prices,” added Kedia.