Gold Prices in India: Surged past ₹1,38,000 per 10 grams, with some retail quotes near ₹1,40,850. Silver Prices in India: Breached ₹2,23,000 per kilogram - both setting new all-time records. Global Records: Spot gold hit $4,500/oz, silver touched $72.70/oz, and platinum reached $2,377.50/oz.
New Delhi, December 24, 2025, Time: 12:20 PM IST– Gold and silver prices skyrocketed to historical highs in India this week as global investors rushed toward safe-haven assets amid escalating geopolitical tensions and expectations of further interest rate cuts by the U.S. Federal Reserve.
According to the India Bullion & Jewellers Association (IBJA), 24-carat gold prices in India surged past Rs 1,38,000 per 10 grams, with some retail markets reporting quotes near Rs 1,40,850, while silver breached Rs 2,23,000 per kilogram — both setting new all-time records.
Global Factors Driving Precious Metals Rally
The rally in precious metals has mirrored global trends. Spot gold climbed past $4,500 per ounce on December 24, marking its highest level ever, while silver touched $72.70 per ounce and platinum reached $2,377.50.
Market analysts attribute the strong momentum to a confluence of geopolitical risks, including heightened U.S.–Venezuela tensions, disruptions from the Russia–Ukraine conflict, and mounting investor concerns over slowing global growth.
“The U.S. Navy’s recent attempts to seize Venezuela-linked oil tankers and persistent political instability have driven a renewed rush into gold as a crisis hedge,” said Devarsh Vakil, Head of Prime Research at HDFC Securities. “Spot gold surged past the $4,500 per ounce psychological level, supported by safe-haven demand and expectations of continued rate cuts.”
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Venezuela Crisis and Rate Cuts Amplify Demand
The Federal Reserve’s third consecutive 25-basis-point rate cut in December lowered the federal funds rate to 3.5–3.75%, further fueling demand for non-yielding assets like gold and silver. Traders are now pricing in additional cuts in 2026 as inflation stabilizes and growth softens across major economies.
This dovish monetary backdrop, coupled with geopolitical instability, has created the perfect storm for precious metals. Global central banks also continue to diversify reserves, increasing holdings of gold amid waning confidence in fiat currencies.
Silver Outshines Gold with 150% Annual Gain
Silver has dramatically outperformed gold in 2025, soaring roughly 150% year-to-date — its strongest annual rally since 1979 — compared with gold’s 70% rise. Analysts cite surging demand from industrial sectors such as solar energy, electric vehicles, and electronics as key drivers behind the silver rally.
“Silver’s structural supply deficit and robust industrial demand have reinforced strong price momentum,” noted PL Capital’s latest outlook. The gold-silver ratio, a key measure of relative value, dropped from 85 to around 75, highlighting silver’s notable strength.
In India, currency fluctuations magnified domestic price gains, with the rupee briefly touching 91.07 against the U.S. dollar before stabilizing. The Analysts said that silver’s sustained price above Rs 2 lakh “signals continued confidence from both investors and industrial users.”
Outlook: Precious Metals May Climb Higher
Market strategists project that if current trends persist, gold could test $5,000 per ounce and silver could reach $80 within the next six to twelve months. However, thin year-end trading volumes may have exaggerated recent volatility.
As 2025 draws to a close, investors appear increasingly focused on sheltering from global uncertainty – and gold and silver are once again proving their timeless value as safe-haven assets.
