Gold & Silver Surge Sharply In 2025: Is It Time To Rebalance Investments?

Nayra Jain

Dec 17, 2025

Gold’s Best Performance In Decades

Gold prices have recorded one of their strongest annual performances in decades during 2025. Multiple record highs reflect its continued role as a safe-haven asset amid geopolitical risks, inflation concerns and shifting global monetary policies.

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Silver’s Historic Price Breakout

Silver has outperformed gold sharply in 2025, rising over 120 percent since January. The metal crossed the landmark Rs 2 lakh per kilogram level, driven by industrial demand, global supply tightness and strong investor participation.

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India Gold Prices See Sharp Jump

In India, gold prices surged significantly during 2025. Rates in Mumbai climbed from around Rs 78,000 per 10 grams at the start of the year to nearly Rs 1.35 lakh, reflecting both global trends and rupee depreciation.

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Industrial Demand Fuels Silver Rally

Silver’s rally has been powered by strong demand from manufacturing, renewable energy and electronics sectors. Its dual role as an industrial metal and investment asset has amplified price momentum during periods of economic uncertainty.

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Role Of Global Economic Uncertainty

Geopolitical tensions, trade disputes and tariff-related risks have boosted demand for precious metals. Investors continue to turn to gold and silver as hedges against volatility, currency weakness and slowing global economic growth.

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Impact Of Rupee Weakness In India

The depreciation of the rupee has added upward pressure on domestic gold and silver prices. Since India relies heavily on imports, currency movements play a critical role in determining local precious metal valuations.

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ETF Inflows Strengthen Market Momentum

Gold exchange-traded funds recorded strong inflows throughout 2025, reflecting rising institutional and retail participation. These inflows have helped sustain price momentum and increased market depth for precious metals.

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Policy Changes Support Fresh Investments

Regulatory approval allowing pension schemes to invest in gold and silver ETFs has opened new channels of demand. This structural change could support long-term investment flows into precious metals.

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Outlook For Gold In 2026

After a strong 2025, gold prices may move within a range next year. However, slower economic growth or further interest rate cuts could still provide upside support for the metal.

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Silver’s Price Support & Risk Factors

Technical indicators suggest silver may remain volatile despite strong momentum. Support levels around Rs 1.90 lakh to Rs 1.86 lakh could help cushion corrections, while global demand trends remain a key risk factor.

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