Silver has gathered strong momentum in 2026, defying earlier predictions of a pullback after delivering record gains last year. Analysts believe the upward trend may continue amid ongoing geopolitical tensions and macroeconomic uncertainty, though they urge caution given that prices have already climbed about 22% this year. The recent surge followed softer-than-expected US inflation data, which strengthened expectations of further interest rate cuts by the Federal Reserve. In December, the US core Consumer Price Index rose 0.2% month-on-month and 2.6% year-on-year, below market estimates, according to Reuters.
Looking ahead, silver is trading above $90 per ounce globally and close to ₹2.9 lakh per kilogram in India, reflecting robust demand for safe-haven assets and support from gold’s strength, said Justin Khoo, Senior Market Analyst for APAC at VT Market. He noted that silver’s appeal has broadened beyond wealth preservation, with rising industrial usage in solar panels, electric vehicles, semiconductors and advanced electronics providing long-term price support.
Analysts added that expected US rate cuts make non-yielding assets like silver more attractive, while geopolitical risks and a softer dollar further support prices. However, high prices could eventually curb demand as industries seek alternatives. Siddharth Maurya, Founder and Managing Director of Vibhavangal Anukulakara, said silver’s rally remains resilient, backed by safe-haven buying, growing demand and supply constraints.
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