Silver Surpasses Rs 4 Lakh per KG, Gold Reaches Historic Rs 1.83 Lakh per 10g Amid Rising Global Safe-Haven Demand
Silver prices in the national capital have surged past the Rs 4 lakh per kg mark, while gold has reached a record high of Rs 1.83 lakh per 10 grams. This significant increase is attributed to a robust rally in global markets, driven by rising geopolitical tensions and economic uncertainty. The All India Sarafa Association reported these developments, highlighting a strong demand for safe-haven assets as investors seek stability amid fluctuating market conditions.
Silver Prices Soar
On Thursday, silver prices experienced a remarkable increase, climbing Rs 19,500, or 5.06%, to reach an all-time high of Rs 4,04,500 per kg, including all taxes. This rise marks the fourth consecutive session of gains for silver, which has seen a staggering increase of Rs 1,65,500, or 69.2%, since the beginning of the year. The previous price was Rs 3,85,000 per kg. Gaurav Garg, a research analyst at Lemonn Markets Desk, noted that the surge in silver prices is largely due to strong investor demand and a significant global rally in precious metals. He emphasized that silver has been outperforming gold, driven by robust industrial demand and a weakening US dollar, which has positively influenced sentiment in the bullion market.
Gold Hits Record High
Gold prices also saw a substantial rise, with 99.9% purity gold jumping Rs 12,000, or 7.02%, to reach a new record of Rs 1,83,000 per 10 grams. This increase follows a previous price of Rs 1,71,000 per 10 grams. Saumil Gandhi, a senior analyst at HDFC Securities, explained that the explosive growth in both gold and silver prices is fueled by strong demand for safe-haven assets, significant inflows into exchange-traded funds (ETFs), and a declining US dollar. Persistent geopolitical tensions and economic uncertainty have reinforced the role of gold and silver as preferred hedges, prompting investors to increase their exposure to these precious metals.
Shifting Consumer Behavior and Demand Trends
Despite the soaring prices, India’s gold demand has shown signs of decline, dropping 11% in 2025 to 710.9 tonnes. The World Gold Council (WGC) anticipates that demand may further moderate to between 600 and 700 tonnes in 2026, primarily due to the record-high prices and changing consumer behavior. In value terms, however, the demand has surged by 30%, reaching Rs 7,51,490 crore in 2025, compared to Rs 5,75,930 crore the previous year. Sachin Jain, Regional CEO (India) at WGC, noted that the gold market in Q4 2025 reflected the dual impact of high prices and evolving consumer preferences. Total gold demand for that quarter was 241.3 tonnes, a 9% decline from Q4 2024, but the increase in value was significant, with overall gold demand rising 49% year-on-year to approximately Rs 3,03,470 crore.
Global Market Dynamics
In international markets, gold prices surged by USD 177.14, or 3.3%, reaching a new record of USD 5,595.02 per ounce. This remarkable increase was driven by heightened geopolitical tensions, particularly following threats from US President Donald Trump regarding Iran’s nuclear program. Praveen Singh, a research analyst at Mirae Asset Sharekhan, highlighted that spot gold achieved its largest-ever intraday gain, reflecting the current market dynamics. Spot silver also climbed, increasing USD 3.59, or 3.07%, to a lifetime high of USD 120.45 per ounce. Looking ahead, Sandip Raichura, CEO of Retail Broking and Distribution at PL Capital, suggested that gold prices could continue to rise significantly, potentially exceeding USD 8,000 by 2027. The WGC reported that global gold demand surpassed 5,000 tonnes for the first time in 2025, reaching a record 5,002 tonnes, largely driven by increased investment demand.
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