The sharp rally in silver contrasts with gold’s subdued movement. The price of 24-carat gold slipped marginally by ₹45 to ₹1,36,615 per 10 grams, after touching an all-time high of ₹1,38,161 in late December. Market participants attributed the divergence to stronger industrial demand for silver and profit-booking in gold following a sustained rally.
Bullion traders said silver has emerged as the stronger performer in recent weeks, driven by its expanding use beyond jewellery. Over the past 10 days, silver has risen from ₹2,28,107 per kg on December 26 to ₹2,46,044, reflecting sustained buying interest. Gold, meanwhile, has largely traded in a narrow range, oscillating between ₹1,33,195 and ₹1,37,956 per 10 grams during the same period.
In major cities, gold prices remained elevated despite the day’s dip. On Tuesday, 24-carat gold was priced at ₹1,39,630 per 10 grams in Delhi, ₹1,39,480 in Mumbai and Kolkata, and ₹1,40,400 in Chennai, according to data compiled by Goodreturns.
The broader trend over the past year highlights the scale of the rally in precious metals. In 2025, gold prices rose by about 75%, gaining over ₹57,000 per 10 grams, while silver outperformed sharply, climbing nearly 167% during the year. Analysts say silver’s outperformance reflects structural shifts in demand.
“Silver is no longer just a precious metal for investment or jewellery. Its use in solar panels, electric vehicles and electronics has made it a critical industrial commodity,” said Ajay Kedia, Director at Kedia Advisory. He added that fears of supply disruption and stockpiling by global manufacturers have further tightened the market.
Gold’s longer-term strength has been supported by a weaker US dollar, geopolitical uncertainties and sustained purchases by central banks, particularly China. However, near-term consolidation is likely after the sharp rise seen in December, traders said.
Looking ahead, analysts remain bullish on both metals. Kedia said silver prices could rise further to ₹2.75 lakh per kg this year if current demand trends persist. Gold, he added, may test ₹1.50 lakh per 10 grams by year-end, supported by safe-haven demand and central bank buying.
