Record High Prices for Gold and Silver in 2025
In 2025, gold and silver prices hit all-time highs. This year, silver increased more than 52% to reach Rs 1,44,000 per kilogram, while gold increased more than 47% to surpass Rs 1,18,000 per 10 grams in India. Inflation, anticipated interest rate reductions by the US Federal Reserve, geopolitical unrest, and robust festival demand in India are the main causes of the increase. The strong industrial demand and limited supply of silver also contribute to its rise. By Diwali, experts predict that these commodities will remain strong, with gold perhaps reaching Rs 1,22,000 and silver Rs 1,50,000. Both metals are regarded as secure investments in the face of world unpredictability, and they might rise further in the months to come.
MARKET NEWS
10/6/20251 min read
The price of gold and silver has reached or nearly reached all-time highs in 2025 due to a number of factors, including strong investor demand for safe-haven assets, accommodative central bank policies, and geopolitical tensions.
In October 2025, the price of gold hit an all-time high of about $3,931 per troy ounce, up roughly 48.7% year over year and 8% in the previous month alone. Gold prices on India's MCX platform surpassed Rs 1,18,000 per 10 grams, and forecasts indicate that by Diwali 2025, they could reach Rs 1,22,000 or more. Concerns about inflation, the slowing US economy, anticipated interest rate cuts by the US Federal Reserve, ongoing ETF inflows, and geopolitical uncertainty are all blamed for the spike. According to J.P. Morgan study, gold prices will average around $3,675/oz by the end of 2025 and increase to almost $4,000/oz by the middle of 2026.
Silver has also had an incredible year, rising more than 52 percent over the previous year and getting close to its peak price of almost $49.50 an ounce in 2011. Due to tightened supply, robust industrial demand, and safe-haven buying amid global uncertainty, including a US government shutdown, silver prices rose above $48 an ounce in early October 2025. By Diwali, silver prices in India could hit Rs 1.50 lakh, having already surpassed Rs 1.44 lakh per kilogram. Analysts predict that silver may break beyond its historic nominal peak of $50.36 an ounce, which, when adjusted for inflation, would equal the 1980 high of almost $200/oz. This would allow for additional advances.
Factors Driving the All-Time Highs
Inflation and currency volatility are driving safe-haven demand.
Expected US Federal Reserve interest rate cuts are boosting the appeal of gold and silver.
Geopolitical tensions and trade uncertainties.
Increased central bank purchases and ETF inflows.
Supply constraints for silver, coupled with strong industrial demand.
Festival season demand in India supporting local price gains.