Gold, Silver Rates hit Record Highs as demand soars on policy shifts and safe-haven appeal

According to the India Bullion and Jewellers Association (IBJA), the benchmark 24-carat gold rate climbed by Rs.2,030 to close at Rs.1,15,292 per 10 grams, while silver jumped Rs.6,000 to reach Rs.1,44,100 per kilogram.

In major metros, 24-carat gold prices stood at Rs.1,16,550 in Delhi, Rs.1,16,400 in Mumbai and Kolkata, and Rs.1,16,730 in Chennai. Bhopal traders quoted Rs.1,16,450 per 10 grams of pure gold, marking a Rs.3,188 increase since January 1, 2025. The 22-carat variant also touched a new peak of Rs.1,05,607 nationwide, with Bhopal’s rate at Rs.1,06,750.

Year-to-date, gold has gained over Rs.39,000, rising from Rs.76,162 on December 31, 2024, to today’s record high. Silver’s one-kilogram benchmark has climbed by Rs.58,083 from Rs.86,017 at the start of the year. Analysts point to five key drivers behind this rally:

1. Central bank purchases boosting demand and restricting supply
   
   

2. U.S. policy uncertainty and the “Trump Factor” weakening the dollar
   
   

3. A flight from volatile cryptocurrencies towards gold
   
   

4. Global de-dollarization reducing dollar dependency
   
   

5. Gold’s status as a long-term store of value in inflationary environments
   
   

PL Capital Director Sandeep Raichura forecasts gold could reach Rs.1,44,000 per 10 grams, while a Goldman Sachs report sets a $5,000/oz target (approx. Rs.1,55,000 per 10g) by next year. Investors keen on silver can consider top-performing silver ETFs such as Nippon India Silver ETF, up 145% over three years.

With festive season spending and global asset reallocations underway, gold and silver remain attractive hedges. Market watchers advise phased buying to average costs, especially as volatility persists in equities and crypto markets. Bhopal buyers are advised to compare local rates before making bulk purchases to capitalize on slight intercity differentials.