Silver soars to Rs 2.32 lakh/kg, Gold tops Rs 1.37 lakh/ amid strong demand

Silver prices appreciated by Rs 14,000 per kg in a day to touch Rs 2.32 lakh per kg on Friday, the highest this year. A supply crunch, coupled with rising industrial and investment demand, has been driving the prices of the metal.

Gold too went up to Rs 1.37 lakh per 10 gm on Friday from Rs 1.36 lakh per 10 gm the day before. Silver has given a return of 150 per cent this year, while gold has given a return of 75 per cent.

“Having strong backing in renewable energy and a tight supply position, silver is maintaining its consistency from the past few weeks,” said Aksha Kamboj, vice president of India Bullion & Jewellers Association and executive chairperson of Aspect Global Ventures.

In the international market, silver touched a high $75 per troy ounce, which is an unprecedented rise in such a short span, bullion dealers said.

Hareesh V, Head of Commodity Research, Geojit Investments, said “Silver has surged to historic highs, breaching ₹2,33,000 per kg in India and testing the psychological level of $75 per ounce in the overseas market. This rally reflects a confluence of factors like robust industrial demand, tightening global supply, and heightened investor interest amid economic uncertainties. With central banks maintaining accommodative stances and geopolitical risks persisting, silver’s appeal as a hedge against inflation and currency volatility remains intact. The sharp rise underscores silver’s dual role as both a safe-haven asset and an essential industrial commodity. Meanwhile, the current breakout could pave the way for further upside if macroeconomic conditions continue to favour precious metals.”

The sharp rally in gold and silver this year is the result of several global and domestic forces acting in tandem. Global economic uncertainty, marked by geopolitical tensions, war-like situations, and a slowdown in major economies, has prompted investors worldwide to seek safe-haven assets. Gold, long regarded as the ultimate safe haven, has seen heavy buying interest as a result, the All India Gem & Jewellery Domestic Council (GJC) said.
Another major factor has been the expectation of interest rate cuts by the United States. As soon as markets sensed that the Federal Reserve may reduce rates in the coming months, the appeal of gold rose sharply, since non-interest-bearing assets tend to gain value faster in such environments. Adding to this momentum, the weakness of the US dollar has naturally lifted gold and silver prices at the international level.Central banks across the globe have also played a pivotal role. Countries such as China, Turkey, and India have increased the gold component in their foreign exchange reserves, reinforcing the long-term bullish trend. Meanwhile, silver has benefited not only from its role as a jewellery metal but also from its growing importance as an industrial metal. Demand for silver has risen rapidly in solar panels, electric vehicles, and the battery industry, adding extra momentum to its price trajectory.

In India, strong physical demand during the wedding and festive season has further supported prices. Rising bullion purchases as a safe investment option have also contributed to the upward trend.

Rajesh Rokde, Chairman of GJC, said: “The bullion market in 2025 has been a clear reminder that precious metals are strategic assets, not speculative instruments. Gold’s historic rise is a direct reflection of global uncertainty. Silver has decisively evolved beyond tradition … emerging as a critical metal powering the future through renewable energy, solar applications, and electric mobility, while retaining its cultural and jewellery relevance. This year has firmly established that gold and silver are not just commodities traded on screens, but pillars of economic stability, cultural heritage, and India’s journey toward technological and sustainable growth.”

Looking ahead, GJC believes that the uncertain global environment, expectations of rate cuts, dollar weakness, central bank buying, and industrial demand for silver will continue to drive both metals into a strong bullish trend. While volatility may increase, the overall outlook remains positive for 2026.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)