Although the price of gold and silver decreased during the last session of 2025, both precious metals are expected to have their largest yearly increase in more than 40 years.
Gold and Silver End 2025 With Historic Gains
Although the month-to-date gain remained at 7%, gold February futures fell ₹1,825 per 10 kilos to the day’s low of ₹1,34,841. Prices were reported at ₹1,35,650 as of 8:00 PM, a 0.74% decrease.
With March futures on MCX falling ₹18,784 per kilogram to the day’s low of ₹2,32,228, silver prices plummeted even more.
High Volatility in Precious Metals
The metal has been quite volatile lately, rising ₹26,853 on Tuesday after plunging ₹15,358 the day before. After a protracted bull run, both metals are still erratic, but they are on track for their best year since 1979.
Strong demand for safe-haven assets in the face of growing geopolitical dangers and subsequent interest rate cuts by the US Federal Reserve, which also weakened the US currency and made commodities more affordable for holders of other currencies, have also contributed to the surge.
Record Highs Earlier This Week
Earlier this week, gold prices surpassed ₹1.4 lakh per 10 grams to reach a new top of ₹1,40,465 on MCX, while silver prices surpassed ₹2.5 lakh for the first time, reaching a new record height of ₹2,54,147 per kilogram.
A surge in gold and silver leads to unprecedented increases in all precious metals.
ETF Inflows and Central Bank Buying
Due to strong inflows into bullion-backed exchange-traded funds from institutional money managers and individual investors, as well as the continuation of central banks’ years-long purchasing binge, MCX gold has seen a stunning 76.7% increase in 2025.
Silver’s Exceptional Performance
Strong industrial demand, its recent designation as a US essential material, and mining difficulties in silver-rich countries have all contributed to silver’s approximately 170.70% price increase this year.
In addition to shocking investors throughout the world, the remarkable surge in both metals forced experts to repeatedly adjust their price projections since prior objectives were exceeded sooner than expected.
Other Precious Metals Also Shine
Palladium and platinum are two more precious metals that are expected to finish 2025 with high returns. With a 124% increase, spot platinum has had its biggest yearly rise since at least 1987.
Supply Constraints and Investment Shift
Tight supply circumstances, rising investment demand, and a shift away from gold all contributed to the surge. In the meanwhile, palladium prices have increased by 78% so far this year.
