Gold vs Silver: Analyzing Which Commodity Holds Superior Return Potential in the Second Half of CY26!

Gold and silver prices experienced a notable uptick on the Multi Commodity Exchange (MCX) on Tuesday, amid favorable international bullion market trends. Specifically, MCX gold for August futures increased by ₹128, or 0.09%, settling at ₹1,42,530 per 10 grams. Similarly, MCX silver for September futures surged by ₹3,029, or 1.36%, to reach ₹2,25,663 per kg. In the global market, spot gold rose by 0.2% to $4,026.17 per ounce, while US gold futures held steady at $4,040.60 per ounce. Despite this recent improvement, both metals continue to grapple with overall downward pressure, with gold witnessing an 11.2% decline in June—a trend reflecting its steepest quarterly fall since April 2013.

The price fluctuations are largely attributed to escalating geopolitical tensions, particularly related to the US-Iran conflict, which have subsequently pushed energy prices higher and amplified inflationary fears. These variables have led traders to anticipate additional interest rate hikes from the US Federal Reserve, with market signals suggesting a 64% likelihood of a rate increase in September, according to the CME FedWatch Tool. The interplay of these global dynamics, combined with internal demand factors in India—especially ahead of the festive season—has also contributed to the recent price movements, highlighting a complex interplay of supply and demand in the market.

Looking ahead to the second half of CY26, market analysts project continued volatility for both gold and silver. While certain indicators suggest gold may trend lower toward $3,700 per ounce, potential jewelry demand in India might offer some stability. Support is anticipated between ₹1,33,000 and ₹1,35,000 per 10 grams for MCX gold, with resistance at ₹1,50,000. For silver, structural demand—especially in renewable energy sectors—could foster recovery despite recent corrections. Analysts recommend accumulating silver for heightened capital appreciation opportunities while maintaining a balanced portfolio that includes gold as a risk-averse hedge in uncertain economic conditions.

Source: Market Source

(Expert Note: This report was independently prepared by the Wealthova Commodities team.)