Precious metals concluded the trading week on a spectacular high, with silver prices scaling unprecedented peaks in both Indian and international markets on Friday. The rally, fueled by strong global signals and subdued year-end trading activity, has marked a historic moment for investors and the bullion industry.
Domestic Markets See Meteoric Rise
In the national capital, silver witnessed a staggering single-day jump of Rs 9,350 to settle at a lifetime high of Rs 2,36,350 per kilogram. This surge comes from the previous session's close of Rs 2,27,000 per kg. The metal's ascent has been particularly sharp over a short period, gaining an impressive Rs 32,250, or 15.8%, in just the past four trading sessions since December 19, when it was at Rs 2,04,100 per kg.
The yearly performance is even more dramatic. From the end of 2024, silver has skyrocketed by Rs 1,46,650, reflecting a colossal gain of 163.5% from its price of Rs 89,700 per kg on December 31, 2024.
Gold, maintaining its parallel upward trajectory, was not left behind. The precious metal of 99.9% purity advanced by Rs 1,500 to touch a new all-time high of Rs 1,42,300 per 10 grams (inclusive of all taxes). On a year-to-date basis, gold has appreciated by Rs 63,350, or 80.24%, from Rs 78,950 per 10 grams at the end of 2024.
Global Rally and Analyst Insights
The momentum was mirrored in overseas markets. Benchmark spot gold rose by $50.87 (1.13%) to reach a record $4,530.42 per ounce. Spot silver outperformed, climbing $3.72, or 5.18%, to breach the $75 mark for the first time ever, hitting $75.63 per ounce.
Analysts attributed the powerful rally to a confluence of factors. Saumil Gandhi, Senior Commodities Analyst at HDFC Securities, noted that the precious metals rally continued on the week's last trading day, pushing both metals to fresh records. He pointed out that low liquidity during the Christmas and year-end holiday season has amplified price movements.
Praveen Singh, Head of Commodities and Currencies at Mirae Asset ShareKhan, explained that gold continues to trade at record highs, buoyed by expectations of interest rate cuts by the US Federal Reserve and a positive sentiment in the broader commodities market.
Structural Support for Silver's Bull Run
Beyond short-term trading dynamics, experts highlight deep-seated structural factors supporting silver's advance. Jigar Trivedi, Senior Research Analyst at Reliance Securities, pointed to a persistent multi-year supply deficit, with global mine production lagging behind demand and above-ground inventories declining steadily.
Trivedi emphasized silver's expanding industrial role, which is creating robust underlying demand. The metal is crucial in several high-growth sectors, including:
- Solar panel manufacturing
- Electric vehicles
- 5G and AI electronics
- Other clean-technology infrastructure
"Structural tightness in the physical market could support much higher prices if deficits deepen," Trivedi stated. He also suggested that a combination of a weak US dollar and rising safe-haven demand could potentially drive silver prices toward the $100 per ounce mark by 2026.
The record-setting closes for both gold and silver underscore a powerful bullish phase in the commodities market, driven by macroeconomic expectations, industrial demand, and specific market conditions, setting a dramatic tone for the year's end.
