The new year of 2026 has begun on a glittering note for precious metals, with silver continuing its robust performance. Bolstered by positive global market signals and renewed investor interest, silver prices traded firmly higher on the first trading day of the year, Friday, January 2.
Market Performance: Domestic and Global Rally
On the Multi Commodity Exchange (MCX), silver futures witnessed a significant surge of 1.9%, which translated to a gain of ₹4,600. By the end of the session, the price was quoted at a strong ₹2,40,500 per kilogram.
The bullish sentiment was mirrored in international markets. Spot silver prices advanced by 2.1% to reach USD 72.75 per ounce. This upward move follows an extraordinary rally where the metal had touched a record high of USD 83.62 earlier in the week, setting a powerful tone for the year ahead.
Retail Silver Rates Across Major Indian Cities
In the physical retail market, prices varied slightly across different cities as of 10 am on January 2. The data, sourced from bullions.co.in, provides a snapshot of the silver rate today for popular denominations:
- Delhi: ₹2,420 (10 gm), ₹24,197 (100 gm), ₹241,970 (1 kg)
- Mumbai: ₹2,424 (10 gm), ₹24,239 (100 gm), ₹242,390 (1 kg)
- Chennai: ₹2,426 (10 gm), ₹24,256 (100 gm), ₹242,560 (1 kg)
- Kolkata: ₹2,415 (10 gm), ₹24,153 (100 gm), ₹241,530 (1 kg)
- Bengaluru: ₹2,421 (10 gm), ₹24,205 (100 gm), ₹242,050 (1 kg)
- Hyderabad: ₹2,422 (10 gm), ₹24,224 (100 gm), ₹242,240 (1 kg)
Other cities like Jaipur, Nashik, and Rajkot also reported similarly strong rates, indicating widespread demand.
Expert View: What is Driving the Silver Rally?
According to Ponmudi R, CEO of Enrich Money, precious metals are entering 2026 on a steady note after a sharp corrective phase at the end of 2025. This consolidation follows the massive rally witnessed throughout last year.
"The broader long-term bullish structure remains intact," Ponmudi R stated. He highlighted several key factors underpinning this strength:
- Persistent supply constraints, especially for silver.
- Robust industrial demand from high-growth sectors like solar energy, electric vehicles (EVs), and artificial intelligence (AI).
- Continued accumulation of gold by central banks worldwide.
- Market expectations of further interest rate cuts by global central banks.
The analyst emphasized that the current near-term consolidation should be seen as a healthy market reset rather than a reversal of the upward trend.
Price Outlook and Key Levels to Watch
Commenting specifically on the silver price outlook, Ponmudi R noted that the metal benefits from a dual demand driver: its traditional role as a safe-haven asset and its accelerating industrial usage. This combination positions it strongly for the long term.
For Indian investors, he identified immediate support in the ₹2,33,000 to ₹2,30,000 per kg zone. On the higher side, he sees upside potential towards ₹237,000 - ₹238,000 in the near term, especially as global market participation normalizes post the new year holidays.
"Silver remains well-positioned for relative outperformance through 2026," he added, expressing confidence in the metal's trajectory.
Disclaimer: This article is for informational purposes only. The views and recommendations mentioned are those of individual analysts. Readers are strongly advised to consult with certified investment experts before making any financial decisions.
