Gold rates and silver prices in India have delivered one of their strongest yearly performances in recent history. As of early December 2025, gold prices have surged 66% year-to-date, while silver has jumped 85%, marking an extraordinary year for precious metal investors. Renewed expectations of a U.S. Federal Reserve rate cut, a softer dollar, and a weakening Indian rupee have all combined to fuel the rally, with silver sharply outperforming the yellow metal.
On Tuesday, gold and silver opened lower on the Multi Commodity Exchange (MCX) as traders booked profits following a steep run-up in the previous session. MCX gold opened 0.41% down at ₹1,30,109 per 10 grams, compared to Monday’s close of ₹1,30,652, while MCX silver began 0.73% lower at ₹1,80,701 per kg, versus its previous close of ₹1,82,030.
The pullback comes after gold climbed to a six-week high on Monday, buoyed by expectations that the U.S. Federal Reserve may cut interest rates this month, along with speculation surrounding shifts in the Fed’s leadership. A weakening rupee, which recently touched record lows against the US dollar, has further inflated precious metal prices in the domestic market.
Globally, the dollar index dipped to 99.43, down 0.03%, extending support to dollar-denominated commodities such as gold and silver. International spot gold eased 0.2% to USD 4,222.93 per ounce, after hitting its highest level since October 21. Meanwhile, U.S. gold futures for December delivery slipped 0.4% to USD 4,256.30 per ounce.
Silver, however, remains the standout performer. Over the past three months alone, gold has risen about 25%, whereas silver prices have soared by more than 40%, repeatedly testing record highs amid tightening physical supply and anticipation of looser global monetary policy.
Can Silver Cross ₹2 Lakh per Kg?
With silver already more than doubling in 2025 and currently trading above ₹1.80 lakh per kg on MCX, investor attention has now shifted to whether the white metal can touch ₹2 lakh per kg in 2025.
Sugandha Sachdeva, Founder of SS WealthStreet, believes silver’s structural momentum remains firmly intact. She noted, “Silver has dramatically outperformed, marking its seventh consecutive monthly gain and hitting a record high of ₹1,75,484 per kg in the March contract. International spot silver also breached its long-standing resistance, rallying to USD 56.53 per ounce, comfortably past the earlier ceiling of USD 54.46 per ounce.”
Sachdeva added that fundamentals are supportive, driven by massive industrial demand from solar panels, electronics, electric vehicles, and pharmaceuticals, along with rapidly falling inventories in global warehouses. China and London bullion stocks have tightened sharply this year. “The US has added silver to its 2025 critical minerals list, underscoring its strategic value in clean-energy technologies and signalling that major economies will prioritise domestic needs before exports,” she said.
Brokerage house Motilal Oswal also expects the rally to continue well into 2026. Its latest outlook projects silver to rise to USD 75 per ounce, driven by a deepening global supply deficit and soaring industrial consumption. The brokerage estimates silver could climb to ₹2.3 lakh per kg in India, assuming current currency and duty structures remain stable.
The report highlights that silver’s surge has been supported by a softening US dollar index below 100, relatively stable rupee movement, and an evolving global bullion market structure. Central banks have purchased nearly 600 tonnes of gold in the first nine months of 2025, while global gold ETFs recorded 450 tonnes of inflows, the highest since 2020—indicating strong appetite for safe-haven assets worldwide.
Technical View: Momentum Still Strong
Analysts believe that silver’s technical setup continues to favour an extended rally. Aamir Makda, Commodity & Currency Analyst at Choice Broking, said the white metal remains in a strong uptrend following its long-awaited breakout.
“Given this downward trajectory toward its historical and ideal range, we can anticipate that silver’s outperformance is likely to continue in the upcoming sessions,” Makda said. He added that in the short term, key support zones lie at ₹1,42,285 and ₹1,21,437, while the next psychological barrier sits at ₹2,00,000 per kg. According to him, traders should adopt a buy-on-dips approach and look for long opportunities during corrective phases.
With an exceptional year nearing its end, both gold and silver remain firmly in focus. Investors are now watching closely to see whether silver can achieve the next major milestone — ₹2 lakh per kg — as global uncertainties, industrial demand, and monetary policy expectations continue to shape the trajectory of precious metals.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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