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What is the story about?
Gold prices edged higher on Thursday (December 25) morning, reflecting sustained safe-haven demand amid global economic uncertainty and shifting monetary expectations. In Mumbai, spot prices for 24-carat gold rose by about ₹320 to ₹1.39 lakh per 10 grams.
The quoted rate excludes GST and making charges.
Silver outperformed, jumping ₹1,000 to ₹2.34 lakh per kg in the spot market, extending a rally that has gathered pace over recent weeks.
What is driving gold?
Market participants point to a combination of macro and policy factors underpinning gold’s resilience. Persistent geopolitical risks, uneven global growth, and lingering inflation concerns continue to support demand for safe assets. Expectations around monetary easing in major economies have also improved gold’s medium-term outlook by lowering opportunity costs.
Aksha Kamboj, Vice President at the India Bullion & Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, said current prices reflect “strong positive momentum due to consistent safe-haven demand pressures along with a positive future outlook for 2026.”
She added that despite uncertainty in the global economy and shifting monetary policies, gold prices have remained constructive.
Why silver is rising faster?
Silver’s rally has broadened beyond its traditional link to gold. Prices have gained support from both investment flows and industrial demand, particularly from renewable energy, power electronics and electric vehicles.
Tight supply conditions have amplified the move.
Harshal Dasani, Business Head at INVasset PMS, said the global silver market remains structurally tight, as mine production has not kept pace with demand growth.
“Over 70% of silver output is a by-product of other metals, which limits supply responsiveness,” he said, noting that persistent physical deficits have reduced above-ground inventories and left exchange stocks thin.
On the demand side, industrial consumption now forms the backbone of silver usage, led by solar photovoltaics and data infrastructure.
At the same time, silver is regaining traction as a financial asset.
Dasani pointed to growing allocations to precious metals within India’s long-term savings ecosystem and highlighted the Reserve Bank of India’s decision to include silver as eligible collateral in liquidity operations, alongside gold. He said the move elevates silver’s monetary standing within the financial system.
Outlook
Globally, silver continues to track gold’s strength, often acting as a higher-beta play on the same macro themes, including currency debasement concerns and geopolitical uncertainty. What differentiates silver, analysts say, is the combination of tight inventories and non-discretionary industrial demand, which can lead to sharper price moves.
For now, both metals remain supported by a confluence of safe-haven buying, policy signals and structural demand trends, keeping prices elevated even as markets await clearer cues on growth and interest rates.
The quoted rate excludes GST and making charges.
Silver outperformed, jumping ₹1,000 to ₹2.34 lakh per kg in the spot market, extending a rally that has gathered pace over recent weeks.
What is driving gold?
Market participants point to a combination of macro and policy factors underpinning gold’s resilience. Persistent geopolitical risks, uneven global growth, and lingering inflation concerns continue to support demand for safe assets. Expectations around monetary easing in major economies have also improved gold’s medium-term outlook by lowering opportunity costs.
Aksha Kamboj, Vice President at the India Bullion & Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, said current prices reflect “strong positive momentum due to consistent safe-haven demand pressures along with a positive future outlook for 2026.”
She added that despite uncertainty in the global economy and shifting monetary policies, gold prices have remained constructive.
Why silver is rising faster?
Silver’s rally has broadened beyond its traditional link to gold. Prices have gained support from both investment flows and industrial demand, particularly from renewable energy, power electronics and electric vehicles.
Tight supply conditions have amplified the move.
Harshal Dasani, Business Head at INVasset PMS, said the global silver market remains structurally tight, as mine production has not kept pace with demand growth.
“Over 70% of silver output is a by-product of other metals, which limits supply responsiveness,” he said, noting that persistent physical deficits have reduced above-ground inventories and left exchange stocks thin.
On the demand side, industrial consumption now forms the backbone of silver usage, led by solar photovoltaics and data infrastructure.
At the same time, silver is regaining traction as a financial asset.
Dasani pointed to growing allocations to precious metals within India’s long-term savings ecosystem and highlighted the Reserve Bank of India’s decision to include silver as eligible collateral in liquidity operations, alongside gold. He said the move elevates silver’s monetary standing within the financial system.
Outlook
Globally, silver continues to track gold’s strength, often acting as a higher-beta play on the same macro themes, including currency debasement concerns and geopolitical uncertainty. What differentiates silver, analysts say, is the combination of tight inventories and non-discretionary industrial demand, which can lead to sharper price moves.
For now, both metals remain supported by a confluence of safe-haven buying, policy signals and structural demand trends, keeping prices elevated even as markets await clearer cues on growth and interest rates.
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