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 reached a new record high of ₹2.41 lakh per kg in Delhi markets on Tuesday, continuing its exceptional rally with a ₹1,000 gain. Gold extended its decline for the second consecutive day, falling ₹2,800 to ₹1,39,000 per 10 grams as profit-taking pressured the yellow metal.

The All India Sarafa Association reported silver's latest milestone, driven by firm global cues and strong industrial demand. This marks another chapter in silver's remarkable performance streak that has captivated precious metals markets.

Silver's Record-Breaking Rally

Silver's momentum continues to impress market participants, with the white metal demonstrating exceptional strength across multiple trading sessions.

On the Multi Commodity Exchange, silver futures for March 2026 delivery soared by ₹9,590, or 4.27%, to ₹2,34,019 per kilogram. The white metal had previously skyrocketed by ₹14,387, or 6%, to touch a record high of ₹2,54,174 per kilogram on Monday.

Gold Extends Decline

In contrast to silver's stellar performance, gold of 99.9% purity extended its losses for the second straight day. The yellow metal declined ₹2,800 to ₹1,39,000 per 10 grams (inclusive of all taxes) from the previous close of ₹1,41,800 per 10 grams on Monday.

International Market Dynamics

Global precious metals markets showed mixed signals with silver gaining momentum while gold also posted gains in international trading.

Strong industrial demand and firm global prices boosted the white metal in local markets, according to market participants.

Expert Analysis and Outlook

Jigar Trivedi, Senior Research Analyst at Reliance Securities, highlighted the structural factors supporting silver's performance. "Despite near-term volatility, silver continues to find support from structural supply constraints and strong industrial demand, particularly from solar, electronics, and data center infrastructure. However, stricter margin rules may keep price gains measured in the short term," Trivedi explained.

He projected that MCX Silver March may appreciate to ₹2,26,000 per kg as the undertone remains bullish in international markets. The analyst emphasized that silver benefits from prolonged supply deficits and surging industrial demand, especially from solar, AI, EVs, and electronics sectors, keeping it in price-discovery territory.

Market Drivers and Industrial Demand

The divergence in performance between gold and silver reflects rising demand for tangible assets amid inflation concerns and resilient industrial consumption. Silver's exceptional rally is underpinned by mounting geopolitical risks and structural supply tightness across multiple industrial applications.

According to market experts, commodities have arguably become the standout outperformer while equities continue to deliver modest gains. The bullish trend in commodities appears poised to persist, driven by enduring structural dynamics across multiple sectors including renewable energy, technology infrastructure, and electronic manufacturing.