Gold and Silver Continue Bullish Momentum: Silver Surges, Gold Gains Ground
The rally in precious metals continues, with silver exhibiting particularly strong performance and gold also posting gains. Several factors are contributing to this sustained upward trend, including economic uncertainty, geopolitical tensions, central bank buying, and industrial demand.
Silver's Impressive Surge
Silver prices have experienced a notable surge, with analysts noting a substantial increase. According to the Indian Bullion and Jewellers Association (IBJA), the price of silver (999 purity) reached an all-time high recently. Spot silver briefly surpassed USD 51 per ounce before settling slightly above USD 50. This surge reflects a year-to-date gain of over 70%, outpacing gold's gains.
Several factors contribute to silver's impressive performance. Silver is used in electric vehicles, and to ensure that costs for EVs don't escalate, companies have started buying silver. Unlike gold, silver has critical industrial applications, especially in green technologies like electric vehicles and solar panels, boosting demand. Global silver mine production has seen declines, leading to supply deficits. Higher demand for silver ETFs has also contributed to rising prices.
Gold's Steady Gains
Gold prices have also continued their upward trend, reaching new record highs. Spot gold broke the USD 4,000 mark for the first time, hitting a record at USD 4,059.34 per ounce in the international market. As of October 13, 2025, the live gold spot price is $4,068.38 per ounce. Gold reached $4,047.97 USD/t.oz on October 13, 2025, a 0.87% increase from the previous day.
Concerns over a potential US government shutdown and debt issues have prompted investors to seek safe-haven assets like gold. Expectations of additional interest rate cuts and uncertainty surrounding US policy decisions and dollar stability have further fueled the rally. Central banks are also diversifying away from the US dollar, increasingly turning to gold as a reserve asset.
City-Wise Rates
Specific city-wise rates for gold and silver were not available in the provided search results. Local prices can vary depending on factors such as transportation costs, local taxes, and demand.
Market Analysis and Future Outlook
Analysts expect some price corrections in the near term due to profit-booking, but maintain a bullish outlook for gold and silver prices over the long term. The sustained momentum in gold is supported by concerns regarding the U.S. government shutdown and the increasing "de-dollarization" trend, which continues to boost safe-haven demand.
Nilesh Shah, Managing Director of Kotak Mutual Fund, notes a surge in demand for gold by central banks and industrial demand for silver. He suggests that both gold and silver deserve a place in investors' portfolios.
The shift towards gold by central banks reflects growing concerns about the long-term stability of the international monetary system. Rising geopolitical tensions and currency competition have made gold an attractive neutral reserve asset.
Factors Influencing Prices
Several macroeconomic factors influence silver prices, including inflation rates, interest rates, and overall economic growth. Market sentiment, shaped by geopolitical events and investor demand for safe-haven assets, can also lead to rapid price fluctuations. Industrial demand for silver in sectors like electronics and green technologies also plays a significant role.
