Gold and silver prices concluded 2025 at historically high levels across major Indian cities on New Year's Eve, capping off an extraordinary year for precious metals investors. Both metals delivered exceptional returns throughout the year, with gold surging approximately 80% and silver witnessing a remarkable 150% appreciation from their beginning-of-year levels.

Exceptional Annual Performance Drives Year-End Rates

The precious metals market witnessed unprecedented growth during 2025, transforming investment portfolios across the country. Gold prices soared from around ₹71,500 per 10 grams at the year's start to peak levels of ₹1,39,000 per 10 grams by the last Monday of December. Similarly, silver demonstrated even more spectacular gains, climbing from ₹90,500 per kilogram to cross ₹2,32,000 per kilogram during the same period.

Current Gold Rates Across Major Cities

On New Year's Eve, gold prices remained elevated across metropolitan centers, with Chennai recording the highest rates among major cities. The following table shows current gold rates per 10 grams:

Despite some year-end profit booking activities, gold maintained its strength near record levels. The 22-carat gold, predominantly used for jewelry manufacturing, stands at ₹1,25,263 in Delhi.

Silver Continues Outperforming Gold

Silver emerged as the standout performer throughout 2025, significantly outpacing gold in percentage terms. Current silver rates reflect the metal's exceptional momentum, with prices trading substantially higher than earlier in the year:

Experts believe silver's outperformance stems from diverse sectoral demand and anticipate continued price appreciation in 2026. The ongoing geopolitical tensions and uncertainty over the global economy due to potential US tariff hikes are expected to support further gains.

Market Outlook and Investment Implications

According to the India Bullion Association, the precious metals market witnessed an unusual trend where silver outshined gold owing to demand from various sectors. This trend is expected to continue into the new year, with no signs of resolution in ongoing geopolitical tensions and global economic uncertainties.

The remarkable performance of both metals throughout 2025 has transformed them from traditional safe-haven assets into significant wealth creators for Indian investors, concluding the year on a historically strong note despite some year-end consolidation.

Silver prices surged by ₹5,000 to hit a new record high of ₹2.56 lakh per kilogram in the national capital on Wednesday, driven by escalating US-Venezuela tensions and robust industrial demand. The All India Sarafa Association reported this latest milestone as safe-haven buying intensified across precious metals markets.

The white metal's exceptional rally continues to captivate traders, with geopolitical tensions providing additional momentum to an already bullish trend supported by supply constraints and strong industrial usage.

Silver's Record-Breaking Performance

Silver demonstrated remarkable strength with a substantial single-day gain, reflecting heightened investor interest in safe-haven assets.

Traders attributed the surge to escalating tensions between the US and Venezuela, which boosted safe-haven appeal. Supply-side constraints and strong industrial usage further amplified silver prices, with sustained buying by investors and China's export curbs on silver that came into effect from January 1 adding to the momentum.

Gold Experiences Marginal Decline

In contrast to silver's stellar performance, gold of 99.9% purity slipped marginally by ₹100 to ₹1,41,400 per 10 grams (inclusive of all taxes), compared to the previous close of ₹1,41,500 per 10 grams.

Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, explained that gold prices experienced a slight decline as investors took profits following a recent rally. A recovery in the US dollar also weighed on gold prices, though persistent geopolitical risks continue to support safe-haven demand for precious metals, limiting sharp downside.

International Market Dynamics

Global precious metals markets showed mixed signals with silver posting gains during intraday trading despite closing lower in international markets.

During the international trading session, silver climbed by $1.45, or 1.80%, to hit an intraday high of $82.75 per ounce, demonstrating the metal's volatile but bullish trajectory.

Expert Outlook and Price Targets

Renisha Chainani, Head - Research at Augmont, provided insights into silver's future trajectory. "We could see some profit booking from here, but when it breaks the previous top again, the next level to watch for is $84 (₹2,66,000 per kg) and $88.50 (₹2,80,000 per kg)," Chainani stated.

Market experts continue to highlight the structural factors supporting silver's performance, including supply deficits, industrial demand from solar and electronics sectors, and geopolitical uncertainties driving safe-haven flows into precious metals.