Bullion rush: Silver price now rising by as much as Rs 1.10 lakh/kg by 2025, yellow metal by Rs 58K/10 gram

Domestic gold and silver prices hit new records on Friday, driven by a weaker rupee that hit a new low of 90.55 against the US dollar. February yellow metal futures rose by Rs 2,500 or 2% per 10 gram to hit a lifetime high of Rs 1,34,966 on the MCX, while March silver contracts rose 1.2% or Rs 2,446 per kg to hit a new high of Rs 2,01,388.Silver crossed the Rs 2 lakh mark today, a level it had not crossed before.

Commenting on current trends, Colin Shah, Managing Director at Kama Jewelry, said the gold market continued to show strong resistance this week as international gold held higher at $4,200 per ounce and remains at multi-week highs. “The same trend is also visible in India with gold price rising to Rs 1,30,700 per 10 gram and 22K to Rs 1,19,900,” he said.According to him, international investors continue to view gold as a lucrative hedging instrument, while domestic demand in India, driven by the wedding season, remains a key supporting factor for jewelery demand. He said demand is expected to continue until early 2026, keeping sales momentum high. “As long as there are no surprise factors related to interest rates and currencies, gold will see a strong uptrend,” Shah added.

“Precious metal prices rose today, supported by a weaker rupee against the US dollar and weakness of the dollar itself against a basket of major currencies,” said Anuj Gupta, director of Ya Wealth Global Research. He noted that while the dollar tends to move inversely against gold and silver, the underperformance of the rupee keeps import prices high for domestic investors, lending further support to the precious metal.

“Silver has been on a strong uptrend this year, driven by safe haven demand, its industrial appeal and a rally in domestic prices that has outpaced international markets. “So far in 2025, silver prices have risen 130% or a massive Rs 1,13,241,” said Gupta, adding that the metal has gained 16.82% or Rs 28,903 in December alone.

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As for MCX’s February gold futures, December gains are now over 6% or Rs 7,856 per 10 grams, while the price appreciation this year has gone up to 75.63% or Rs 57,972.

Trading strategy

Gupta suggests a buy for silver and gold.

Buy silver around Rs 1,92,000-1,93,000 with a stop loss of Rs 1,84,000 and a target of Rs 2,05,000.

Buy gold at Rs 1,29,000-1,30,000 with a stop loss of Rs 1,26,000 and a target of Rs 1,35,000.

(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)