Silver prices have surged to unprecedented highs, crossing ₹2.5 lakh per kilogram in some cities, while gold rates have also reached record levels, hitting ₹1.40 lakh per 10 grams. This surge reflects a strong rally in precious metals, driven by a combination of factors including global economic trends, rising industrial demand, and geopolitical tensions.
Silver's Record-Breaking Rally
Silver has experienced a remarkable surge in value, with prices in Delhi reaching ₹2,34,100 per kilogram. This marks a significant increase compared to previous months, with experts attributing the rally to rising industrial demand and supply shortages. Silver's increasing use in sectors like electric vehicles, solar energy, electronics, and medical equipment has fueled demand, leading to a widening supply-demand gap.
In international markets, the spot price of silver reached $74.71 per ounce as of December 25, 2025. The rise in silver prices has been substantial throughout 2025, with some reports indicating a surge of nearly 125% in the domestic market.
Gold's Steady Climb
Gold prices have also seen a steady increase, reaching record highs in various cities. In Delhi, the price of 24K gold has touched ₹1,40,850 per 10 grams. This surge is attributed to strong trends in the global markets, with international spot gold prices nearing $4,500 per ounce.
The price of gold in India today is ₹13,926 per gram for 24 karat gold, ₹12,766 per gram for 22 karat gold. Globally, gold prices are influenced by factors such as expectations of easier US monetary policy and intensifying geopolitical risks.
Factors Driving the Precious Metal Rally
Several factors are contributing to the current rally in both silver and gold prices:
- Industrial Demand: Silver's increasing use in various industries, particularly green energy technologies, is a major driver of its price surge.
- Safe-Haven Demand: Geopolitical tensions and economic uncertainties often lead investors to seek safe-haven assets like gold and silver.
- US Federal Reserve Policies: Expectations of interest rate cuts by the US Federal Reserve can weaken the dollar and boost precious metal prices.
- Supply Shortages: Tight supply conditions in the silver market are exacerbating the price rally.
- Weakening Rupee: A weakening rupee against the dollar can make precious metals more expensive in local currency.
Regional Price Variations
It's important to note that gold and silver prices can vary across different cities due to local market conditions and demand. For example, silver rates in Delhi today stand at ₹2,330.00 for 10 grams. These fluctuations highlight the importance of staying informed about local prices before making any investment decisions.
Market Outlook
Looking ahead, analysts predict that silver prices could climb further, potentially reaching ₹2.20 lakh per kg in the near term and surpassing ₹3 lakh per kg in the long term. Gold is also expected to maintain its upward trajectory, with some major banks forecasting prices between $4,500 and $4,700 in 2026.
However, investors should be aware of potential risks such as overvaluation, weakness in physical demand, and profit-taking, which could weigh on silver and gold prices. Experts suggest investing in Gold and Silver ETFs in small quantities to mitigate risk.
