The Indian bullion market witnessed a historic surge today as gold and silver prices shattered all previous records. According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold jumped by ₹4,717, reaching a staggering ₹1,59,027 per 10 grams, while simultaneously, silver prices witnessed a massive spike of ₹24,802, bringing the cost of one kilogram of silver to ₹3,42,507.
Primary Drivers Behind the Gold Price Surge
The second factor is the record depreciation of the Indian Rupee. The Rupee hit an all-time low of ₹91. 10 against the US Dollar today. Since gold is traded internationally in dollars, a weaker rupee Importantly increases. The landing cost of gold in India, pushing domestic prices to new heights. Lastly, central banks across the globe, including the RBI, are aggressively increasing their gold reserves to hedge against economic fluctuations, leading to a demand-supply mismatch.
Market analysts point towards three major factors fueling this rally. The foremost is the escalating global tension surrounding the 'Greenland' dispute. US President Donald Trump's stance on Greenland and threats of tariffs against European nations have created significant instability in global markets, while historically, during times of trade wars or geopolitical uncertainty, investors shift their capital from volatile stock markets to the safety of gold.
Why Silver is Outperforming Gold
Silver has seen an even more dramatic rise, becoming ₹1. 12 lakh more expensive in just the first 27 days of this year. The surge is primarily driven by massive industrial demand. Silver is no longer just a precious metal for jewelry; it has become a critical raw material for solar panels, electronics, and the electric vehicle (EV) industry. Plus, the fear of supply chain disruptions due to US. Tariffs has led manufacturers to stockpile silver, driving prices upward.
Future Outlook: Will Gold Reach ₹2 Lakh?
According to Dr, while renisha Chainani, Head of Research, if the Middle East tensions and US tariff wars escalate further, gold could potentially hit ₹1,90,000 per 10 grams by 2026. Silver is also expected to cross the ₹4 lakh per kg mark in the coming months, while the current trend suggests that the bullish run in precious metals is far from over.
Safety Tips for Gold and Silver Buyers
For those looking to buy gold amidst these high prices, experts recommend strictly purchasing BIS Hallmark certified jewelry. This ensures the purity of the metal through a unique alphanumeric code. Also, buyers should always cross-verify the daily rates from reliable sources like the IBJA website. To check the authenticity of silver at home, one can perform a magnet test—genuine silver is non-magnetic. Another method is the ice test, where ice melts much. Faster on real silver due to its high thermal conductivity.