Gold & Silver Strong Rally Changed Face Of Commodity Market At MCX; Zerodha's Nithin Kamath Explains

Gold and silver rates in India and globally have skyrocketed to moon. Where spot gold has soared by nearly 74% in a year, silver outperforms with a massive 206% returns. At MCX as well growth has been impressive. Riding on the back of strong rally in gold and silver, the commodity market in general has taken a significant shift. Zerodha's co-founder Nithin Kamath explains that few years ago, commodity trading was more or less an afterthought.

But that has changed dramatically now. He added, "thanks to the spectacular rally in gold and silver."

"If you look at gold and silver as a percentage of total MCX trading volumes today, the numbers are kind of crazy," he said.

A lot of this increase has come at the expense of other commodities like crude.

Further, Kamath added, "Our own market share at Zerodha took a hit during this period because we were one of the last brokers to offer the single trading ledger facility-where you can use the same funds in your account to trade across NSE, BSE, and MCX. But it's been steadily inching back up."

Still, he said, "it's wild how much volumes have grown. If you'd asked me a few years ago whether this would happen, I'd probably have said no."

On January 21, MCX gold made a history. The bullion in futures with February 2026 expiry date, touched a new all-time high of Rs 1,58,475 per 10 grams. MCX silver too did not disappoint as it rallied to hit a new life time high of Rs 3,38,804 per 1Kg.

That being said, gold of February 2026 expiry, is up by 61.43% from its lowest level of Rs 98,169 per 10 grams. While MCX silver has recorded extraordinary 254.4% returns from its lowest point of Rs 95,606 per 1Kg.

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