Gold and Silver Prices Surge: Gold Nears ₹1.60 Lakh per 10 Grams

The Indian bullion market continues to witness a significant rally in precious metal prices, while according to data released by the India Bullion and Jewellers Association (IBJA) on February 25, 2026, the price of 10 grams of 24-carat gold rose by ₹582 to reach ₹1,59,823. In the previous trading session, gold was recorded at ₹1,59,241 per 10 grams. This marks the third consecutive day of gains for the yellow metal, resulting in a cumulative increase of ₹5,000 within just three trading days.

Silver prices also saw a substantial jump today, while the price of one kilogram of silver increased by ₹6,455, bringing the rate to ₹2,69,367 per kg. On the previous trading day, silver had closed at ₹2,62,912 per kg. Market observers attribute this sharp rise to a combination of global economic factors and heightened demand for safe-haven assets amidst international uncertainties.

Latest Market Rates from IBJA

According to official figures from IBJA, gold prices showed strength from the opening of the market on February 25. The 24-carat gold rate stood at ₹1,59,823 per 10 grams. Since the beginning of 2026, both gold and silver have experienced significant volatility. Data indicates that gold has become dearer by ₹27,000 and silver by ₹39,000 so far this year. 86 lakh per kg.

Factors Driving the Precious Metal Rally

According to market reports and expert observations, three primary global factors are driving the current surge in gold and silver prices. Firstly, central banks across the globe are aggressively purchasing gold to diversify their reserves and reduce dependence on the US dollar. Secondly, signals from the US Federal Reserve regarding potential interest rate cuts this year have boosted the appeal of non-yielding assets like gold. Thirdly, escalating geopolitical tensions in the Middle East and between Iran and the US have prompted investors to move their capital into safer commodities.

Comparative Performance of 2025 and 2026

The year 2025 was a landmark period for precious metals. 33 lakh by December 31, 2025, representing a 75% increase. During the same period, silver witnessed a massive 167% jump. 30 lakh per kg by the end of 2025.60 lakh.

Central Bank Reserves and ETF Demand

A report by investment banking firm UBS highlights that the demand for gold remains solid globally. The report mentions that central banks worldwide purchased 863 tons of gold in 2025. For 2026, it's estimated that this figure could rise to 950 tons. On top of that, investment in Gold Exchange Traded Funds (ETFs) is also expected to see a significant uptick, while projections suggest that ETF holdings could increase by 825 tons in 2026, providing further upward pressure on prices as institutional interest remains high.

International Market Projections and UBS Report

According to the UBS report, international gold prices could potentially reach $6,200 per ounce by mid-2026.80 lakh per 10 grams mark. Supply chain disruptions and inflationary pressures globally have also played a role in maintaining high price levels. Currently, market participants are closely monitoring US economic data and upcoming Federal Reserve policy meetings for further direction.