Gold, silver prices hit record highs for 5th straight session; gold at Rs 1.38 lakh per 10gm
PTC Web Desk: Gold and silver prices touched fresh all-time highs on December 29, extending their rally for the fifth consecutive trading session, driven by global uncertainties, strong investment demand and industrial consumption.
According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold rose by Rs 205 to Rs 1,38,161 per 10 grams, compared to Rs 1,37,956 in the previous session. Silver witnessed an even sharper surge, climbing
Rs 15,376 to Rs 2,43,483 per kg, up from Rs 2,28,107 earlier.
So far this year, gold prices have surged by Rs 61,999 per 10 gm. On December 31, 2024, 24-carat gold was priced at
Rs 76,162 per 10 gm, which has now jumped to Rs 1,38,161.
Silver has registered an even steeper rise, gaining Rs 1,57,466 per kg during the same period. The white metal was priced at Rs 86,017 per kg at the end of December 2024 and has now soared to Rs 2,43,483 per kg.
Why gold and silver prices differ across cities
IBJA rates do not include 3% GST, making charges or jewellers’ margins. As a result, retail prices vary across cities. IBJA prices are primarily used by the Reserve Bank of India (RBI) to determine Sovereign Gold Bond rates and by several banks to fix gold loan valuations.
Three key reasons behind gold’s rally
Expectations of interest rate cuts in the US have weakened the dollar, reducing the holding cost of gold and boosting demand. Ongoing global conflicts, including the Russia-Ukraine war, have pushed investors towards gold as a safe-haven asset. Countries such as China have been aggressively adding gold to their reserves, with central banks collectively purchasing over 900 tonnes in the past year.
Three factors fueling silver’s surge
Rising use of silver in solar energy, electronics and electric vehicles has transformed it into a critical industrial metal. Fears of higher tariffs have prompted US companies to stockpile silver, tightening global supply. Manufacturers are rushing to secure supplies amid fears of production disruptions, sustaining price momentum.
Analysts are projecting that the yellow metal could cross Rs 1.50 lakh per 10 gm next year amid sustained demand and global uncertainties.
- With inputs from agencies
