Silver emerged as the standout performer in FY26, delivering a remarkable 120% rise that significantly outpaced both gold and crude oil. According to reports from Mint, silver's exceptional performance was driven by structural supply deficits and robust industrial demand from sectors including electric vehicles, solar energy, and artificial intelligence. The precious metal also served as a safe haven due to escalating geopolitical uncertainties throughout the fiscal year.
Gold prices rose 50% in FY26, supported by strong central bank demand and diversification trends among investors. As reported by Mint, central banks maintained easy liquidity policies to counter negative growth impacts from tariff situations, making gold investment more attractive. The US dollar weakened by approximately 10% in 2025, enhancing gold's appeal to overseas buyers due to its global trading mechanism in dollars.
Crude oil prices experienced a dramatic 58% rise in FY26, with oil prices surging 55% in March alone. According to Nirpendra Yadav, Senior Research Analyst at Bonanza, oil prices are currently driven by geopolitical tensions in the Middle East, with potential for prices to spike to $130-$200 in extreme scenarios. However, the long-term outlook shows oversupply risks and demand slowdown concerns.
The recent US war department briefing has triggered significant market volatility, with immediate impacts on commodity prices and investor sentiment. While the briefing did not officially declare a full-scale escalation, it highlighted rising geopolitical tensions and strategic preparedness. Brent crude moved upward as traders priced in geopolitical risk, while gold gained momentum as investors sought stability. The US dollar initially strengthened as investors moved toward safer assets, with emerging market currencies including the Indian Rupee coming under pressure.
Market analysts suggest a balanced approach to commodity investments for FY27, with silver positioned as the potential outperformer. As reported by Mint, Kaynat Chainwala from Kotak Securities noted that while both precious metals have declined recently due to US-Iran conflict pressures, the underlying bull case remains intact. Nirpendra Yadav from Bonanza believes silver could be the highest probability outperformance asset, while gold will maintain its role as a portfolio stabilizer. Recent market volatility reinforces the need for disciplined investment approaches across all three commodities, particularly as markets navigate ongoing geopolitical uncertainties.
Despite ongoing market pressures, the Indian Rupee demonstrated remarkable resilience with a 171 paise recovery to close at ₹93.10 for the week, snapping a four-week losing streak. The currency had initially breached the psychologically significant 95-mark against the US dollar for the first time in history, touching a record low of 95.12 on Monday. However, the Reserve Bank of India's intervention through limits on non-deliverable forward positions helped curb speculative pressure and restore confidence in the currency. This recovery, combined with gains in IT, metals, and defence sectors, helped limit broader market losses despite continued foreign institutional investor selling.
