Silver Soars to Unprecedented Heights, Breaching ₹2 Lakh Mark; Gold Prices Exhibit Stability – City-Wise Rates Disclosed
In a historic market movement, silver prices have, for the first time ever, crossed the ₹2 lakh per kilogram threshold in India. This surge is attributed to robust industrial demand, tightening supplies, and a softened stance on monetary policy from the US Federal Reserve. Meanwhile, gold prices are holding steady, influenced by global trends, local demand, and fluctuating currency rates.
Silver's Record-Breaking Rally
Silver's record-breaking rally has captured market attention, decisively outperforming gold. The surge is fueled by a combination of factors. Surging industrial demand, especially in sectors like electric vehicles (EVs) and solar energy, is a primary driver. Silver is a critical component in many industrial applications, and its demand is expected to remain strong in the coming years. A persistent global supply deficit and dwindling inventories further exacerbate the price increase. Increased investor interest, amplified by inflows into silver ETFs, is also contributing to the rally. Geopolitical uncertainty adds another layer of support, as investors seek safe-haven assets like silver during times of global instability.
On December 11, silver futures for March delivery jumped to ₹1,91,800 per kg on the Multi Commodity Exchange (MCX). Spot silver also rose in the international market, reaching a lifetime high of $62.88 per ounce. Experts predict that if the current momentum continues, silver could reach ₹2 lakh per kg before 2026.
Gold Prices Remain Steady
While silver is experiencing unprecedented gains, gold prices are showing relative stability. As of December 12, the price of 24K gold in India is ₹13,076 per gram, while 22K gold is priced at ₹11,986 per gram. These prices reflect a slight increase due to global demand and inflationary pressures.
City-Wise Gold Rates (Per Gram)
- Delhi: 24K gold is ₹13,091; 22K gold is ₹12,001
- Mumbai: 24K gold is ₹13,076; 22K gold is ₹11,986
- Bangalore: 24K gold is ₹13,075; 22K gold is ₹11,985
- Chennai: 24K gold is ₹13,146; 22K gold is ₹12,050
City-Wise Silver Rates (Per Kilogram)
- Delhi: ₹2,01,100
- Mumbai: ₹2,01,000
- Chennai: ₹2,09,000
- Kolkata: ₹2,01,100
- Bangalore: ₹2,01,000
- Hyderabad: ₹2,23,100
Market Influences and Future Outlook
Precious metal prices in India are influenced by a mix of global and local factors. International gold and silver prices play a significant role, as do currency exchange rates, particularly the rupee-dollar exchange rate. Domestic demand, especially during the wedding and festival seasons, can also impact prices.
Analysts anticipate that silver's upward trend will continue, driven by persistent supply shortages and strong industrial demand. Kotak Securities projects silver to reach $70-75 in 2026. Factors like the US Federal Reserve's monetary policy decisions and geopolitical developments will continue to shape the trajectory of both gold and silver prices in the coming months.
