Silver Scales New Peak At ₹1.64 Lakh, Gold Glitters With ₹2,000 Surge — What’s Driving The Precious Metal Rally?

Mumbai: The Indian bullion market extended its upward momentum this week, with silver leading the charge. The white metal soared over Rs 15,000 per kilogram to close at an all-time high of Rs 1.64 lakh per kg, while gold too gained more than Rs 2,000 per 10 grams amid sustained demand and global cues.

According to data from the Indian Bullion and Jewellers Association (IBJA), silver prices jumped Rs 4,950 on Friday alone, ending at Rs 1,64,500 per kg against Rs 1,59,550 the previous day. Meanwhile, 24-carat gold slipped marginally by Rs 1,104 to Rs 1,21,525 per 10 grams, down from Thursday’s record Rs 1,22,629.

Strong Weekly Gains for Both Metals

Both precious metals logged robust weekly gains. Silver advanced Rs 15,667 from Monday’s Rs 1,48,833 per kg, while gold prices climbed Rs 2,276 from the week’s opening level of Rs 1,19,249 per 10 grams.

The firm trend was mirrored in the domestic futures market. On the Multi Commodity Exchange (MCX), gold for December 5 delivery settled at Rs 1,21,492 per 10 grams on Friday, up 0.83 percent or Rs 999 from the previous close. Silver futures for the same expiry ended at Rs 1,46,698 per kg, up Rs 374 or 0.26 percent.

ETF Inflows and Global Factors Add Shine

Analysts attribute the rally to a mix of modest mining output, geopolitical tensions, and festive buying in India. Silver exchange-traded funds (ETFs) are trading at steep premiums compared to global benchmarks as investors flock to safe-haven assets.

A report by Axis Mutual Fund noted that global silver inflows reached 95 million ounces in the first half of 2025, surpassing last year’s total. This surge pushed total ETF holdings to around 1.13 billion ounces, valued at over USD 40 billion by mid-2025.

With rising investor appetite and festive demand ahead, experts believe the bullion market may continue to glitter — though profit-booking could trigger short-term corrections.