Silver prices in the national capital soared past the significant psychological barrier of Rs 4 lakh per kilogram on Thursday, while gold simultaneously scaled a fresh lifetime peak of Rs 1.83 lakh per 10 grams. This remarkable rally was fueled by a sharp upswing in global markets, as investors sought refuge in safe-haven assets amidst escalating geopolitical tensions and mounting economic uncertainty, according to data from the All India Sarafa Association.
Historic Gains for Precious Metals
Silver extended its winning streak for the fourth consecutive session, registering a staggering gain of Rs 19,500, or 5.06%, to close at an unprecedented high of Rs 4,04,500 per kg (inclusive of all taxes). This marked a substantial jump from its previous session's close of Rs 3,85,000 per kg. The year-to-date performance has been nothing short of spectacular, with silver prices skyrocketing by Rs 1,65,500, or 69.2%, from the Rs 2,39,000 per kg recorded at the end of the previous year.
Analysts Attribute Rally to Multiple Factors
Gaurav Garg, Research Analyst at Lemonn Markets Desk, highlighted the milestone achievement, stating, "Silver prices surged past the Rs 4 lakh per kg milestone on Thursday, while gold rallied to a record high on the back of strong investor demand and a powerful global rally in precious metals." He attributed this surge to robust safe-haven demand triggered by global economic instability and intensifying geopolitical conflicts. Garg further elaborated, "Silver, in particular, has been outperforming gold, supported by robust industrial demand and a weakening US dollar, which continues to boost sentiment across the bullion complex."
Gold of 99.9% purity witnessed an explosive move, leaping by Rs 12,000, or 7.02%, to touch a historic high of Rs 1,83,000 per 10 grams (inclusive of all taxes), up from Rs 1,71,000 per 10 grams in the prior session. Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, commented, "An explosive move extended in gold and silver, with both metals hitting new all-time highs in Thursday's session. The rally was driven by strong demand for safe-haven assets, strong inflows into ETFs, and a weak US dollar." He emphasized that persistent geopolitical tensions and global economic uncertainty have reinforced the role of gold and silver as preferred hedges, prompting investors to significantly increase their exposure to these precious metals.
Contrasting Trends in India's Gold Demand
In a contrasting development, the World Gold Council (WGC) reported that India's gold demand declined by 11% in 2025 to 710.9 tonnes. This moderation is expected to continue, with demand projected to fall further to a range of 600–700 tonnes in 2026, primarily due to record-high prices and evolving consumer behavior. For context, gold demand stood at 802.8 tonnes in 2024.
However, in value terms, the soaring prices led to a sharp 30% increase in demand, which rose to Rs 7,51,490 crore in 2025, compared to Rs 5,75,930 crore a year earlier. Sachin Jain, Regional CEO (India) at WGC, provided insights into the fourth quarter of 2025, stating, "India's gold market in Q4 2025 clearly reflected the dual impact of record-high prices and shifting consumer behaviour. Total gold demand for the quarter stood at 241.3 tonne, marking a 9 per cent decline compared to Q4 2024. However, this moderation in volume was more than offset by a sharp rise in value, with overall gold demand increasing 49 per cent year-on-year to approx. Rs 3,03,470 crore."
Global Markets Witness Unprecedented Moves
On the international front, gold prices surged by USD 177.14, or 3.3%, to achieve a new record of USD 5,595.02 per ounce. Praveen Singh, Research Analyst at Mirae Asset Sharekhan, noted, "Spot gold posted its largest-ever intraday gain to hit a fresh record high of USD 5,595, driven by heightened geopolitical tensions after the US President Donald Trump threatened Iran with dire consequences to return to talks to reach a new deal on its nuclear programme."
Similarly, spot silver climbed by USD 3.59, or 3.07%, to reach a lifetime high of USD 120.45 per ounce. Sandip Raichura, CEO of Retail Broking and Distribution & Director at PL Capital, offered a forward-looking perspective, suggesting, "Gold price movements based on the past may no longer work as we believe the world is witnessing a once in a century phenomenon and therefore gold could head much higher in the next two years, possibly crossing USD 8,000 by 2027."
Record Global Demand for Gold
According to the WGC, global gold demand surpassed the 5,000-tonne mark for the first time in 2025, reaching an all-time high of 5,002 tonnes. This surge was largely propelled by investment demand, which more than doubled, rising to 2,175.3 tonnes from 1,185.4 tonnes in 2024, underscoring the metal's growing appeal as a strategic asset in turbulent times.
