Gold and silver prices in India have skyrocketed, with gold up 66% and silver 85% in 2025. Although both opened lower on the MCX, analysts remain bullish about silver's ability to reach ₹2 lakh per kg, spurred by industrial demand and softening global conditions.
Gold rates and silver prices in India have recorded one of their strongest yearly performances in recent history. As of early December 2025, gold prices have climbed 66% year-to-date, while silver has jumped 85%, marking an amazing year for precious metal investors. A sinking Indian rupee, a weakened dollar, and renewed hopes of a rate cut by the U.S. Federal Reserve have all contributed to the surge, with silver beating the yellow metal by a significant margin.
On Tuesday, gold and silver opened lower on the Multi Commodity Exchange (MCX) after traders booked profits following a sharp run-up in the previous session. MCX silver started 0.73% lower at ₹1,80,701 per kg from its previous close of ₹1,82,030, while MCX gold opened 0.41% lower at ₹1,30,109 per 10 grams from Monday's finish of ₹1,30,652.
The decline follows gold's six-week high on Monday, which was supported by speculation about changes in the Fed's leadership and anticipation that the US Federal Reserve may lower interest rates this month. The rupee's recent decline to all-time lows in relation to the US dollar has further driven up the price of precious metals on the local market.
Globally, the dollar index fell to 99.43, down 0.03%, providing support for commodities denominated in dollars, such silver and gold. International spot gold dropped 0.2% to USD 4,222.93 per ounce, after achieving its highest level since October 21. In the meantime, US gold futures for delivery in December fell 0.4% to USD 4,256.30 per ounce.
But Silver continues to be the best performer. Over the past three months alone, gold has surged around 25%, and silver prices have soared by more than 40%, repeatedly testing record highs amid tighter physical supplies and anticipation of looser global monetary policy.
Can a kilogram of Silver Cross cost ₹2 lakh?
With silver already more than tripling in 2025 and already selling at ₹1.80 lakh per kg on MCX, investor attention has now switched to whether the white metal can achieve ₹2 lakh per kg in 2025.
The founder of SS WealthStreet, Sugandha Sachdeva, thinks silver's structural momentum is still strong. "Silver has dramatically outperformed, marking its seventh consecutive monthly gain and hitting a record high of ₹1,75,484 per kg in the March contract," she said. Additionally, international spot silver broke above long-standing resistance, rising to USD 56.53 per ounce, easily surpassing the previous ceiling of USD 54.46 per ounce.
According to Sachdeva, the fundamentals are favorable due to the enormous industrial demand from solar panels, electronics, electric cars, and pharmaceuticals as well as the quickly declining stockpiles in international warehouses. China and London bullion stocks have tightened substantially this year. According to her, "the US has added silver to its 2025 critical minerals list, underscoring its strategic value in clean-energy technologies and signaling that major economies will prioritize domestic needs before exports."
Additionally, brokerage firm Motilal Oswal anticipates that the surge would last well into 2026. Its new prognosis projects silver to grow to USD 75 per ounce, driven by a deepening global supply imbalance and surging industrial consumption. According to the brokerage, silver prices in India might reach ₹2.3 lakh per kg if present duty and currency structures stay the same.
According to the analysis, a declining US dollar index below 100, comparatively steady rupee movement, and a changing global bullion market structure have all contributed to silver's rise. Central banks have purchased roughly 600 tonnes of gold in the first nine months of 2025, while global gold ETFs reported 450 tonnes of inflows, the largest since 2020—indicating robust desire for safe-haven assets worldwide.
Technical View: Momentum Still Strong
Analysts feel that silver’s technical setup continues to favour a sustained climb. Aamir Makda, Commodity & Currency Analyst at Choice Broking, said the white metal remained in a solid uptrend following its long-awaited breakout.
“Given this downward trajectory toward its historical and ideal range, we can anticipate that silver's outperformance is likely to continue in the upcoming sessions,” Makda added. He noted that in the immediate run, critical support zones lay between ₹1,42,285 and ₹1,21,437, while the next psychological barrier rests at ₹2,00,000 per kg. He believes that during corrective phases, traders should take a buy-on-dips strategy and search for long opportunities.
With an outstanding year reaching its finish, both gold and silver remain firmly in focus. Investors are now watching closely to see whether silver can achieve the next key milestone – ₹2 lakh per kg — as global uncertainties, industrial demand, and monetary policy expectations continue to impact the trajectory of precious metals.
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