Mumbai, 24 December 2025 
Domestic gold prices in India surged sharply this week, climbing to an unprecedented ₹1.40 lakh per 10 grams in the national bullion markets as global commodity prices rallied and investor demand for safe-haven assets intensified. The rise marks one of the steepest annual increases in recent history, with gold appreciating nearly 78% since the end of 2024.

According to market data, the 99.9% pure gold benchmark, which closed at around ₹1,38,200 per 10 grams on Monday, jumped by approximately ₹2,650 on Tuesday, breaching ₹1,40,850 in key trading centres. Silver prices followed suit, touching a fresh record of over ₹2.17 lakh per kilogram, driven by sustained bullish activity in the commodities market.

Domestic Rally Mirrors Global Trends

The surge in domestic bullion prices reflects broader global market momentum. Spot gold prices internationally climbed above $4,498 per ounce, approaching the $4,500 milestone for the first time, driven by geopolitical tensions and expectations of aggressive monetary easing. Market analysts attribute the rally to anticipation that the U.S. Federal Reserve may implement multiple rate cuts next year, weakening the dollar and enhancing gold’s appeal as a hedge against uncertainty.

Silver also reached new highs in international markets, briefly surpassing $70 per ounce, as investors rotated into tangible assets amid global economic and geopolitical instability.

Record Annual Gains in Precious Metals

Gold has delivered exceptional returns for investors in 2025. The price of gold in India stood at approximately ₹78,950 per 10 grams at the end of December 2024, a level significantly eclipsed by the current rally. This translates to a gain of nearly ₹61,900 or 78.4% year-to-date. Meanwhile, silver has posted an even sharper rise, registering gains of around 142% during the same period.

Demand Shifts and Market Sentiment

Industry analysts note that safe-haven demand, persistent geopolitical uncertainty, and expectations of accommodative monetary policy remain the primary drivers of the uptrend. Investors typically increase allocations to gold during periods of heightened volatility, reinforcing bullion’s long-standing role as a portfolio hedge.

However, despite record price levels, retail jewellery demand has softened slightly in parts of India, particularly in wedding-driven markets. Market participants indicate that elevated prices are dampening physical purchases, even as investment and futures-linked demand remains strong.

Outlook and Expert Views

Market experts expect bullion prices to remain elevated into early 2026, depending on global macroeconomic conditions and central bank policy signals. A weaker U.S. dollar and sustained geopolitical risk premiums could continue to support precious metal prices, though short-term volatility cannot be ruled out.

Investors are now closely monitoring upcoming economic indicators, including U.S. GDP revisions and central bank communications, which may shape the near-term outlook for gold and silver across both global and Indian markets.