Gold to stay 'moderately to strongly positive' in 2026: PL Capital

Gold is expected to stay 'moderately to strongly positive' in 2026 after being a top performer in 2025, according to a PL Capital report. Silver has significantly outperformed gold, rising over 100% in 2025, driven by industrial demand.

Gold, that remained one of the strongest performing assets of 2025, is expected to stay "moderately to strongly positive" in 2026, financial advisory services firm PL Capital has asserted in a report. Gold prices are up over 60 per cent so far in 2026.

Drivers for Gold's Positive Trend

Global demand for gold touched a record high of 1,313 tonnes in the July-September quarter of 2025, according to the Market Outlook report by PL Capital. ETF inflows, central-bank buying, and macro uncertainty continue to support the trend.

"India has recorded its highest gold ETF inflows on record this year. The 2026 outlook (for gold) stays moderately to strongly positive," the report read.

Silver Outperforms Amid Industrial Demand

Silver also gained currency this year, similar to that of gold. Silver has significantly outperformed gold, rising over 100 per cent in 2025, and crossing USD 60 per ounce.

According to PL Capital, silver prices were driven by a powerful industrial demand supercycle (solar PV, EV batteries, semiconductors, power electronics). "Supply remains in structural deficit, reinforcing the strong outlook for 2026," the report read.

Indian Economic and Equity Outlook

India enters December with strong domestic momentum, record-low inflation and improving earnings visibility. The RBI's 25 basis points repo rate cut, bringing the key interest rate to 5.25 per cent, along with sharply lower Consumer Price Inflation (CPI) projections and upgraded GDP estimates, with hopes of a supportive rate environment through 2026.

Indian equities continue to demonstrate resilience amid global uncertainty, according to the report. On a cumulative basis, Sensex and Nifty indices rose about 8-9 per cent in 2026.

Investment Strategy and Preferred Themes

"Over the next 6-24 months, the earnings cycle is expected to broaden across consumption, financials, capex-linked sectors and select industrials. We retain a large-cap bias in the near term, while selectively adding to high-quality midcaps as earnings visibility improves."

Preferred themes for 2026, according to PL Capital, include banks, NBFCs, consumer staples and discretionary, defence and ports.

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