Gold and silver end 2025 volatile after record rallies; Goldman Sachs targets $4,900/oz for gold

For loan connectors and DSAs operating in India's credit space, precious metals volatility is a secondary concern—but the underlying driver is not. Central bank buying and geopolitical uncertainty that boost gold also typically reduce credit demand and increase risk premiums. When investors flee to safety, loan demand slows and borrower creditworthiness tightens, pressuring DSAs and lenders to recalibrate margins and tighten underwriting.

The 2026 outlook for gold ($4,900/oz) and silver ($100/oz) signals sustained economic uncertainty. For NBFCs and DSAs, this environment calls for defensive portfolio management: focus on secured lending, working capital facilities, and borrowers with hard assets (gold-backed loans, asset-light operations). Bullion-backed lending could see renewed interest as borrowers look to leverage rising collateral values.