Silver prices on Thursday breached the Rs 4 lakh per kilogram-mark in the national capital, while gold touched a fresh record high of Rs 1.83 lakh per 10 grams, tracking a sharp rally in global markets amid rising geopolitical and economic uncertainty.
PTI reported All India Sarafa Association stating that silver extended gains for the fourth consecutive day, surging Rs 19,500, or 5.06 per cent, to an all-time high of Rs 4,04,500 per kilogram (inclusive of all taxes).
The white metal had closed at Rs 3,85,000 per kilogram on Wednesday.
This year, silver prices have risen Rs 1,65,500, or 69.2 per cent, from Rs 2,39,000 per kg recorded at the end of last year.
"Silver prices surged past the Rs 4 lakh per kg milestone on Thursday, while gold rallied to a record high on the back of strong investor demand and a powerful global rally in precious metals," Gaurav Garg, Research Analyst at Lemonn Markets Desk, told PTI.
He attributed the sharp uptrend to strong safe-haven demand amid global economic uncertainty and escalating geopolitical tensions.
"Silver, in particular, has been outperforming gold, supported by robust industrial demand and a weakening US dollar, which continues to boost sentiment across the bullion complex," Garg added.
In the bullion market, gold of 99.9 per cent purity also jumped sharply, gaining Rs 12,000, or 7.02 per cent, to touch a record of Rs 1,83,000 per 10 grams (inclusive of all taxes) from the previous close of Rs 1,71,000 per 10 grams, as per the Association.
"An explosive move extended in gold and silver, with both metals hitting new all-time highs in Thursday's session. The rally was driven by strong demand for safe-haven assets, strong inflows into ETFs, and a weak US dollar," Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities told PTI.
He noted that ongoing geopolitical tensions and global economic uncertainty have reinforced gold and silver's role as preferred hedges against risk, prompting investors to increase allocations to precious metals.
Meanwhile, India's gold demand declined 11 pc in 2025 and is expected to be around 700 tonne this year, weighed down by record-high prices and changing consumer buying patterns, the World Gold Council (WGC) said in a report on Thursday.
Overall gold demand in India fell 11 per cent to 710.9 tonnes in 2025 and is expected to be between 600 and 700 tonnes in 2026, according to the WGC's Full-Year 2025 Gold Demand Trends report.
In 2024, the overall gold demand stood at 802.8 tonnes.
However, in value terms, skyrocketing prices boosted demand by 30 per cent to Rs 7,51,490 crore, compared to Rs 5,75,930 crore in the previous year.
"India's gold market in Q4 2025 clearly reflected the dual impact of record-high prices and shifting consumer behaviour. Total gold demand for the quarter stood at 241.3 tonne, marking a 9 per cent decline compared to Q4 2024.
"However, this moderation in volume was more than offset by a sharp rise in value, with overall gold demand increasing 49 per cent year-on-year to approx. Rs 3,03,470 crore," WGC Regional CEO, India, Sachin Jain, told PTI.
In the international market, gold increased USD 177.14, or 3.3 per cent, to touch a fresh peak of USD 5,595.02 per ounce.
"Spot gold posted its largest-ever intraday gain to hit a fresh record high of USD 5,595, driven by heightened geopolitical tensions after the US President Donald Trump threatened Iran with dire consequences to return to talks to reach a new deal on its nuclear programme," Praveen Singh, Research Analyst, Mirae Asset Sharekhan, said.
The yellow metal prices were also boosted after US Treasury Secretary Scott Bessent indicated that Trump could make an announcement "in the next week or so" about who he will pick to be the next chair of the Federal Reserve.
Spot silver advanced sharply, rising USD 3.59, or 3.07 per cent, to hit a lifetime high of USD 120.45 per ounce in overseas trade.
Sandip Raichura, CEO of Retail Broking and Distribution & Director, PL Capital, said, "Gold price movements based on the past may no longer work as we believe the world is witnessing a once in a century phenomenon and therefore gold could head much higher in the next two years, possibly crossing USD 8,000 by 2027." According to WGC, global demand for gold has crossed 5,000 tonnes to reach a new all-time high in 2025, mainly driven by investments.
Total gold demand hit a new all-time high of 5,002 tonnes in 2025, up from 4,961.9 tonne in the previous year, as the investment demand surged to 2,175.3 tonne compared to 1,185.4 tonne in 2024, driven by safe-haven and diversification factors, WGC said.
(With PTI inputs)
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