Gold prices are once again commanding investor and consumer attention as the yellow metal holds comfortably above the psychologically crucial $5,000 per ounce mark, supported by geopolitical tensions, tariff uncertainty and expectations of robust global demand. Silver, however, is telling a very different story—marked by sharp volatility and drying volumes—while steel prices in India appear to be taking a breather after a strong rally.Gold steady above $5,000, consumers adapt to higher prices
Gold has rebounded from recent corrections and climbed back above $5,200 per ounce, reinforcing the view that elevated prices may be here to stay. According to Varghese Alukkas, Managing Director of Jos Alukkas Group, consumers are gradually adjusting to the new price regime, even as volatility continues to influence buying behaviour.
“Customers are really looking for stable gold prices. When a correction happens, confidence dips because buyers worry about further falls,” Alukkas said. “But at current levels, we are seeing a lot of exchange-led purchases and demand for price-point products.”While some buyers remain on the sidelines waiting for clarity, jewellers are recalibrating offerings to match consumer sentiment. Lightweight and design-led jewellery is increasingly being positioned as an alternative to heavy, investment-oriented pieces.Looking ahead, Alukkas expects prices to remain firm, with the potential for another leg up. “Given war tensions and tariff issues, gold has crossed $5,200. We still see a possibility of $5,500–$5,600. From April, stability will be important, especially as the new financial year and wedding season pick up,” he said.Globally, the bullish undertone remains intact. UBS expects gold demand to hit a new high in 2026, projecting prices as high as $6,200 per ounce, driven by strong investment flows and sustained central bank buying.Silver volatile, volumes dry up despite annual gainsSilver, in contrast, has failed to inspire confidence despite being up around 20% year-on-year. Prices have corrected nearly 50% from peak levels, and the lack of stability has pushed both investors and consumers to the sidelines.“Even though silver is up on a yearly basis, on the ground volumes have dried up,” said Rahul Mehta, Managing Director of Silver Emporium. “Stability is more important than the absolute price. Without it, both investment and consumption demand weaken.”Mehta noted that when silver was trading at ₹3.5–4 lakh per kg, investment demand was already muted. In the current environment, silver has increasingly become a trader’s market, with sharp price swings offering short-term opportunities but posing risks for long-term investors.
“For long-term investors, silver looks attractive in the ₹1.9–2.3 lakh per kg range,” he said. “Systematic investment plans (SIPs) can help average costs and reduce the risk of getting stuck at higher levels.”There is also a gradual shift from physical silver to electronic and SIP-based investing, even as the broader market waits for clearer price direction. The Silver Institute expects global silver demand to remain steady in 2026, but near-term sentiment remains fragile.Steel prices pause after rally, profit booking emergesAway from precious metals, steel prices in India appear to be consolidating after a strong run-up over the past two months. Prices had rebounded 15–20% from a seven-year low seen in October, but recent sessions have seen resistance from buyers and profit-taking by traders.“There is a pause, but it’s not driven by US tariffs or court rulings,” said Dhruv Goel, CEO of BigMint Technologies. “Prices had gained significant momentum. At current levels, buyers are resisting and traders are booking profits.”Goel expects prices to remain supported in the near term, aided by healthy mill bookings and restocking activity. “Mills are still oversold, and prices should hold through March. Beyond that, some rationalisation could be seen,” he said.On the global front, uncertainty around trade flows and tariffs continues, but Goel believes India’s steel market remains relatively insulated. “From an Indian perspective, we don’t see China or tariffs having a direct impact on domestic steel prices, though global uncertainty remains,” he added.Also Read | Gold demand not at ‘alarming’ levels, says FM Sitharaman; RBI flags robust external sectorBottom lineAs 2026 unfolds, gold continues to dominate headlines with resilience at record levels and a strong long-term outlook. Silver remains trapped in a volatility-driven cycle, testing investor patience despite favourable long-term arithmetic. Steel, meanwhile, is entering a phase of consolidation after a sharp rebound, with fundamentals still supporting prices in the near term.For investors and consumers alike, stability—not just price direction—is emerging as the key theme across commodities.Watch accompanying video for entire discussion.
