By: Bharat Daily Samachar Date: 22 Sep,2025

Gold and Silver Prices Break Records

India’s bullion market witnessed a historic surge as gold prices on the Multi Commodity Exchange (MCX) climbed above ₹1.10 lakh per 10 grams, while silver breached ₹1.32 lakh per kilogram. This sharp rise marks one of the highest-ever levels in the country’s bullion trade, sparking both excitement and concern among investors, jewellers, and households ahead of the festive season.

The jump in precious metal prices comes at a time when global uncertainties, currency fluctuations, and geopolitical tensions are pushing investors worldwide to turn towards safe-haven assets like gold and silver.

Why Are Gold and Silver Prices Rising?

There are multiple reasons behind this sudden spike in gold and silver rates:

1. Global Economic Concerns – Persistent worries over inflation, slowing growth in major economies, and expectations of delayed interest rate cuts by the US Federal Reserve have boosted demand for gold.

2. Geopolitical Tensions – Rising instability in global hotspots has triggered investors to seek security in assets that hold value in uncertain times. Gold traditionally benefits from such geopolitical risks.

3. Currency Weakness – The weakening of the Indian Rupee against the US Dollar has made imported gold costlier, directly impacting domestic prices.

4. High Investor Demand – Both institutional investors and retail buyers are increasing their positions in precious metals, treating them as long-term hedges against financial risks.

5. Festive and Wedding Season Demand – India being one of the world’s largest consumers of gold, demand is naturally rising ahead of Navratri, Dussehra, and Diwali, further fuelling prices.

Impact on Consumers

For ordinary buyers, the surge means buying gold jewellery has become significantly costlier. Families preparing for weddings or festive shopping are now rethinking their budgets. Silver, often seen as a more affordable alternative, too has touched levels never seen before, crossing ₹1.32 lakh per kg.

Jewellers in Delhi, Mumbai, and other metros reported slower footfall, with many customers choosing to postpone large purchases in anticipation of possible corrections. On the other hand, investors in gold exchange-traded funds (ETFs) and digital gold platforms are seeing strong returns.

Investors’ Perspective

While jewellery buyers may feel the pinch, investors are celebrating. Gold has outperformed several other asset classes in recent months, making it a preferred choice for those seeking safety. Experts suggest that if global uncertainty continues, gold prices may rise even further, possibly setting new records in the weeks ahead.

Silver, too, is seeing renewed investor attention—not only as a precious metal but also because of its industrial uses in solar panels, electronics, and batteries. Analysts believe silver’s dual role as a precious and industrial commodity gives it a unique advantage.

What Analysts Say

Market analysts believe that the rally in gold and silver may not be temporary. Some key expert insights include:

• Bullish Outlook – Many predict gold could touch ₹1.15 lakh per 10 grams if global economic and political risks persist.

• Volatility Ahead – Sudden corrections are also possible if the US Federal Reserve signals faster interest rate cuts or if the dollar strengthens.

• Silver’s Bright Future – With rising demand from the clean energy sector, silver could continue to climb in the long run, despite short-term fluctuations.

Historical Context

Traditionally, Indians have seen gold not just as jewellery but as a store of wealth across generations. In times of economic uncertainty, demand for gold tends to rise sharply. Silver, too, has deep cultural and practical significance, making the current surge historically significant.

The fact that both metals have simultaneously crossed such extraordinary levels makes this moment one of the most remarkable phases in India’s bullion market history.

What Should Buyers Do?

For consumers and small investors, experts suggest a cautious approach:

• If buying for festivals or weddings, consider smaller purchases or explore lightweight jewellery.

• Long-term investors can look at gold ETFs, sovereign gold bonds, or digital gold instead of physical purchases to avoid storage and safety issues.

• Those eyeing silver could explore silver ETFs or futures, given its rising industrial demand.

Final Thoughts

The surge of gold above ₹1.10 lakh per 10 grams and silver above ₹1.32 lakh per kg is not just about numbers—it’s about the shifting tides of the global economy, changing investor sentiment, and India’s deep cultural connection to precious metals.

For households, it may mean tighter budgets during festive shopping, but for investors, it highlights the power of gold and silver as enduring assets of value.

As the festive season approaches, the glitter of gold and silver will continue to dominate headlines, leaving everyone—from jewellers to policymakers—watching closely what comes next.