Published: 26 Mar, 2026
Key takeaways
- Price Rally: Gold jumped 3.73% to ₹144,100/10g, silver rose 4.80% to ₹234,700/kg due to easing Middle East tensions, a weakening dollar, and short covering.
- Short-Term Outlook: Gold may reach $4,900 (~₹1.63 lakh/10g), silver $80–$82 (~₹2.73 lakh/kg); the rally is likely a temporary corrective bounce, not a long-term trend.
- Risk of Decline: Gold support at $4,000, potential drop to $3,450–$3,500, silver support near $70, could fall to $50–$53; market remains cautious due to possible interest rate hikes and a strengthening dollar.
Amidst tensions in the Middle East, gold and silver—which had been facing a decline—witnessed a sharp surge on Wednesday. On the MCX, gold rose by 3.73% to close at ₹144,100 per 10 grams, while silver climbed 4.80% to reach ₹234,700 per kilogram. Prior to this, both metals had experienced a decline during the first two days of the trading week.
The question now arises: why did this rally occur so suddenly, and will it continue in the future? To address this, *Jagran Business* spoke with Ajay Kedia, Director of Kedia Advisory. He outlined a strategy for investors based on four key points, which will determine whether the current rally is sustainable or if the market is likely to witness a decline once again.
Question 1: Why has there been such a sudden surge in gold and silver prices?
Answer: The recent surge—3.5% in gold and 5.25% in silver—is, in fact, a "technical rebound." In March 2026, gold had plummeted by over 19%, marking its steepest decline in the last 40 years. Consequently, the market had entered an "oversold" condition.
The primary reason behind this recent surge is the easing of global tensions. Negotiations regarding a 15-point draft for a ceasefire between the US and Iran have progressed, providing relief to the market.
Furthermore, the Dollar Index failed to sustain itself above the 100 mark. The combination of three factors—diminishing global tensions, a weakening dollar, and "short covering" (sellers buying back their positions)—collectively fueled this sharp rally in gold and silver.
Question 2: Will this upward trend in gold and silver continue, and what are the price targets?
Answer: For the time being, this rally appears to be merely a temporary surge (a corrective bounce); it does not signify a definitive or sustained long-term uptrend. Gold has found support in the range of $4,000 to $4,100, while silver has stabilized near the $60 mark.
In terms of short-term targets, driven by short covering, gold could potentially rise to $4,900 (equivalent to ₹1.63 lakh per 10 grams in Indian currency), while silver could touch the $80–$82 level (approximately ₹2.73 lakh per kilogram).
The 'Gold-Silver Ratio' has also declined from 66 to 62, suggesting that silver may currently witness a slightly stronger upward momentum. However, given the signals from the US Federal Reserve (Fed)—indicating a temporary pause on interest rates followed by potential hikes by December—market sentiment is likely to remain cautious. In other words, this rally is unlikely to be long-lived.
Question 3: Could prices fall again from current levels? How low might they drop on the downside?
Answer: Yes, despite the current rebound, the risk of a major decline has not yet subsided. Gold's immediate support level stands at $4,000. If this level is breached, gold could slide down to the $3,450–$3,500 range (equivalent to ₹1.15 lakh to ₹1.16 lakh per 10 grams in Indian currency).
Meanwhile, silver—having failed to sustain itself above the $100 mark—is currently finding support near $70; however, it could plummet further to the $50–$53 range (equivalent to ₹1.76 lakh per kilogram in Indian currency).
There are several major factors driving this outlook: a strengthening Dollar Index (hovering near 100), an inflation rate rising above 2.4%, and the looming anticipation of interest rate hikes. Unless gold decisively breaks above the $5,100 mark, market pressure and weakness could persist for the next 4–5 months.
Question 4: Which is the better investment—gold or silver? What should investors do right now?
Answer: Under current market conditions, investing in gold is a safer and superior option compared to silver. The 'Gold-Silver Ratio'—which had dropped to 43.50 in February 2026—is now hovering around 62 and is expected to rise to 75. This directly implies that gold is poised to outperform silver.
Disclaimer from msn: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
