The rally comes amid renewed global interest in precious metals, driven by geopolitical uncertainties, shifting investment patterns, and seasonal domestic demand. Silver, traditionally more volatile, has seen consistent gains in recent weeks. Over the last 10 days alone, prices have jumped from ₹1,53,650 on November 24 to the current record level.
Gold, too, has displayed strong momentum through 2025. From ₹76,162 per 10 grams at the end of December 2024, prices have climbed ₹52,388 so far. The yellow metal had hit a lifetime high of ₹1,30,874 on October 17 before retreating slightly in subsequent weeks.
Market analysts attribute the surge to three major factors. First, central banks worldwide have stepped up gold purchases, seeking to reduce reliance on the US dollar and diversify reserves. Second, heightened volatility in cryptocurrency markets has pushed a section of investors back toward traditional safe-haven assets. Third, the ongoing wedding season has bolstered consumer demand across Indian cities.
Price variations across regions persist due to local taxes, making charges, and jewellers’ margins. IBJA’s benchmark rates exclude GST, which results in city-wise differences. Several banks, including Punjab National Bank, use these rates to determine gold loan valuations.
Ajay Kedia, Director at Kedia Advisory, said geopolitical tensions continue to lend strong support to bullion. He expects gold to potentially reach ₹1.35 lakh per 10 grams by year-end, while silver could extend its rally toward ₹1.85 lakh per kg if current trends hold.
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