Silver Surges to Historic Rs 1.07 Lakh/kg, Gold Nears Record Highs: What’s Driving India’s Bullion Boom?
A deep dive into the forces behind the unprecedented rise in silver and gold prices, investor sentiment, and what the future holds for precious metals in India.
Introduction
The Indian bullion market is experiencing a notable upswing, as silver prices surpass Rs 1.07 lakh per kilogram and gold approaches its all-time peak.
These movements have caught the attention of investors, traders, and households alike, as precious metals continue to serve as safe-haven assets amid global economic turbulence.
Silver’s Meteoric Rise: Breaking Records
Silver’s ascent has been nothing short of spectacular. On June 6, 2025, silver prices in India soared to Rs 1,07,000 per kilogram, marking a jump of Rs 3,000 in just one day and setting a new all-time high. This surge is echoed across all quantities, with per gram rates climbing from Rs 104 to Rs 107 in 24 hours. The rally is attributed to a combination of robust global market trends and a weakening rupee, which has made silver imports more expensive and pushed domestic prices higher.
Key Silver Price Milestones (June 2025):
• June 3: Silver at Rs 1,00,560/kg
• June 5: Silver at Rs 1,04,100/kg
• June 6: Silver at Rs 1,07,000/kg
The sharp rise in silver prices has been felt across major Indian cities, with Mumbai, Delhi, Kolkata, and Chennai all reporting rates above Rs 1,01,000 per kilogram as early as June 5.
Gold: Steady Gains, Nearing Historic Highs
Gold has also experienced a strong upward trajectory, though its pace has been steadier compared to silver. During the first week of June, gold prices in India surged by Rs 22,900 per 100 grams, pushing 24-carat gold to Rs 99,610 per 10 grams as of June 5—just a few hundred rupees below its record peak of Rs 1,01,350.
On June 6, gold prices remained steady after a week of consistent gains, with 24-carat gold priced at Rs 9,960 per gram and 22-carat gold at Rs 9,130 per gram. The Multi Commodity Exchange (MCX) reflected similar trends, with gold futures trading at Rs 98,075 per 10 grams, up by Rs 201 from the previous session.
Recent Gold Price Movements:
• June 2-5: 24-carat gold rises by Rs 22,900 per 100 grams
• June 6: 24-carat gold valued at Rs 99,600 for every 10 grams
• MCX futures at Rs 98,075 per 10 grams
What’s Fueling the Surge?
Several factors are converging to drive this unprecedented rally in precious metals:
• Global Economic Uncertainty: Ongoing geopolitical tensions and concerns over global economic growth have pushed investors towards safe-haven assets like gold and silver.
• Currency Fluctuations: The weakening of the Indian rupee against the US dollar has made imports of gold and silver more expensive, directly impacting domestic prices.
• Festive and Industrial Demand: The approach of Bakrid and other festive occasions has boosted gold demand in India, while silver’s industrial applications continue to support its price.
• Speculation and Hedging: The gap between spot and futures prices on the MCX indicates active speculation and hedging in the market, further fueling volatility and upward momentum.
Investor Sentiment and Outlook
The ongoing surge in gold and silver prices has sparked a mix of enthusiasm and prudence among investors.
While the upward momentum offers attractive returns, the volatility and high price levels also raise concerns about potential corrections. Analysts suggest that as long as global uncertainties persist and the rupee remains under pressure, precious metals will continue to attract strong demand.
For those considering entry, experts recommend a cautious approach—monitoring global cues, currency trends, and domestic demand patterns before making significant investments.
Conclusion
The Indian bullion market is in the midst of a historic surge, with silver breaking all records and gold standing on the threshold of new highs. Driven by global uncertainty, currency movements, and robust demand, these trends underscore the enduring appeal of precious metals as both a store of value and a hedge against volatility. Investors should stay informed and weigh their options carefully as the market navigates this extraordinary phase.
The image added is for representation purposes only
