Precious metals see second consecutive week of strong gains; investors shift from volatile assets to safe haven
Mumbai ( Economy India): India’s bullion market witnessed another powerful rally this week, with both gold and silver prices surging to new highs, driven by strong global demand, central bank buying, and increased domestic consumption amid peak wedding season. Market data from the India Bullion and Jewellers Association (IBJA) shows that gold prices rose by ₹2,001 per 10 grams, while silver prices skyrocketed by ₹13,851 per kg between 28 November and 5 December.
This marks the second consecutive week of gains, reinforcing the trend that precious metals remain among the best-performing asset classes in 2024–25.
Gold Nears Record Highs Again
On 28 November, 24-carat gold was priced at ₹1,26,591 per 10 grams.
By 5 December, it had climbed to ₹1,28,592, reflecting a weekly rise of ₹2,001.
India last saw its all-time high gold price on 17 October, when rates touched ₹1,30,874 per 10 grams — a level that analysts expect could be tested again soon.
Silver Outperforms Gold, Hits Highest Price Ever
Silver delivered a much sharper rally.
On 28 November, silver was priced at ₹1,64,359 per kg, and by 5 December, it reached ₹1,78,210—a massive weekly jump of ₹13,851.
This is also the highest silver price in India’s history.
Market experts say silver’s industrial demand for EV batteries, solar panels, and electronics has contributed significantly to the surge.
Massive Returns in 2024: Gold Up 69%, Silver Up 107%
Precious metals have outperformed almost every other asset class this year.
Gold (YTD 2024)
- Price on 31 Dec 2024: ₹76,162 per 10g
- Current price (5 Dec 2025): ₹1,28,592 per 10g
- Total increase: ₹52,430
- Return: +69%
Silver (YTD 2024)
- Price on 31 Dec 2024: ₹86,017 per kg
- Current price (5 Dec 2025): ₹1,78,210 per kg
- Total increase: ₹92,193
- Return: +107%
Silver has more than doubled investor wealth in just 11 months — making it one of the most profitable commodities globally.
Major Factors Driving the Rally in Gold and Silver
Massive Central Bank Buying
Major central banks across Asia, the Middle East, and Europe have been aggressively purchasing gold to reduce dependence on the US dollar.
Impact:
Continuous buying keeps global demand elevated, pushing prices higher.
Shift from Crypto & Equities to Safe Assets
Global uncertainty, volatile crypto markets, and tightening global regulations have pushed investors toward safer assets, particularly gold.
In India:
- Stock markets delivered lower-than-expected returns in recent months.
- Wedding-season jewellery demand increased sharply.
- Gold ETFs saw strong inflows.
Impact:
Higher retail & institutional demand is driving up prices.
Gold as a Long-Term Wealth Protector
Gold’s status as a non-destroyable, limited-quantity asset makes it a natural hedge against inflation.
Impact:
Long-term investors continue to buy gold irrespective of short-term market fluctuations.
City-Wise Gold & Silver Prices Also Rise
Precious metal rates across major metro cities (Mumbai, Delhi, Bengaluru, Kolkata, Chennai) also showed similar upward trends. City-specific premiums varied depending on local demand and making charges.
Buying Advice for Consumers
If you plan to buy gold, experts recommend:
Always Buy Hallmarked Gold
Check for:
- BIS logo
- Purity grade (22K/24K/18K)
- Alphanumeric hallmark number (e.g., AZ4524)
This ensures authenticity and purity.
Verify the Daily Price
Gold prices vary by purity and city.
Always cross-check rates on:
- IBJA website
- Certified jewellers’ daily price boards
- Reputed bullion traders
Will Prices Rise Further?
Analysts expect:
- Gold may cross ₹1,32,000–₹1,35,000 per 10g if central bank buying continues.
- Silver may touch ₹1,90,000 per kg due to rising industrial usage.
If global inflation stays high and geopolitical tensions remain unresolved, precious metals could see another wave of record-breaking highs.
(Economy India)
