The price of silver in India soared to an unprecedented peak on Monday, December 22, 2025, mirroring a historic rally in gold and other precious metals. Investor optimism surrounding potential interest rate reductions in the United States and persistent safe-haven demand fueled a broad-based surge across the sector.
Record-Breaking Numbers for Silver and Gold
On the domestic Multi Commodity Exchange (MCX), silver March futures contracts skyrocketed by 2.39%, reaching a trading value of ₹2,13,412 per kilogram around 9:15 AM IST. Earlier in the session, the metal had even touched a fresh lifetime high of ₹2,13,844 per kg. This remarkable ascent was accompanied by firm gold prices, with MCX gold February futures gaining 0.77% to trade at ₹1,35,224 for every 10 grams.
The bullish trend was equally powerful in global markets. International spot silver prices climbed 2.7% to achieve a historic milestone of USD 69.23 per ounce. Simultaneously, spot gold advanced by 1.2%, scaling a new record peak of USD 4,391.92 per ounce.
Platinum and Palladium Join the Precious Metals Rally
The upward momentum was not confined to just silver and gold. The rally extended aggressively to other key precious metals, indicating strong sector-wide investor interest.
Platinum witnessed a sharp jump of 4.1% to reach USD 2,054.25 per ounce. This level marks its highest valuation in more than 17 years, signaling a powerful comeback for the metal.
Similarly, palladium prices advanced by 4% to hit USD 1,781.32 per ounce. This surge propelled palladium to its highest point in nearly three years, underscoring the broad strength in the complex.
What's Driving the Unprecedented Surge?
Silver's performance in 2025 has been nothing short of spectacular, significantly outpacing its more traditional counterpart, gold. On a year-to-date basis, silver has surged by an astounding 138%.
This sharp appreciation is underpinned by two major factors. First, strong investment inflows have poured into the metal, as traders and funds position themselves for a favorable macroeconomic environment. Second, ongoing supply constraints continue to tighten the physical market. These supply challenges are occurring even as industrial and investment demand remains robust, creating a potent mix for price escalation.
The primary catalyst for the current spike remains the growing market conviction that the US Federal Reserve will implement further interest rate cuts. Lower interest rates diminish the opportunity cost of holding non-yielding assets like silver and gold, making them more attractive to investors. This expectation, combined with its role as a traditional safe haven during times of economic uncertainty, has propelled silver to its current record-breaking heights.
