After increase in demand and interest rate cut by Federal Reserve Bank, silver crossed the level of ₹ 2 lakh per kg for the first time. On the Multi-Commodity Market (MCX), silver is currently trading at ₹ 200,510 per kg, up by about ₹ 1,600. Gold also reached record high today.
Today gold prices rose more than silver. On MCX, gold rose by nearly ₹2,500 to hit a record high of ₹134,966 per 10 grams, which is a record high. This sharp rise in gold and silver prices happened in the evening, when the Indian stock market was closed. Indian stock market also closed with good gains today. Nifty closed above 26,000, up 140 points, and Sensex closed 450 points higher at 85,267.
Why did the prices of gold and silver rise so much?
Aksha Kamboj, Vice President of India Bullion and Jewelers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, said that silver prices may increase further due to good industrial production trends and weak dollar. The momentum remains positive with expectations of increased demand from industry and clean energy.
Silver prices are already up 100% in 2025. According to a report by Axis Mutual Fund, demand for silver has increased due to continuous growth in sectors like solar energy, electric vehicles and semiconductors. Silver is benefiting from investors investing in commodities and the strong trend in other metals, due to which there is positivity in the entire market. Geopolitical tensions, concerns over the economic impact of US tariffs, massive purchases of gold and silver by central banks, and large investments in ETFs have all driven up the prices of these precious metals.
What could happen next for gold and silver?
Already, gold and silver have shown consistent upward momentum over the long term, providing good returns to investors. Therefore, investing in them can be a wise decision from a long-term perspective. But, gold and silver prices are currently at record highs, so there is a risk of decline. Weak physical demand, possibility of exit from ETFs, and profit-booking are also big risks. Therefore, gold and silver prices may fall.
What should investors do?
Experts say that if you are planning to invest in gold and silver, but are not able to buy them due to rising prices, then you should invest small amounts in gold and silver ETFs. This will reduce the risk of short-term losses even when prices fall, and buying more during a recession will result in higher profits when prices rise.
