Gold Hits Rs 1.30 Lakh, Silver Soars to Rs 1.58 Lakh: Is It Time to Buy or Hold Off?

Gold and silver prices in India have reached unprecedented levels, with 24-carat gold touching Rs 1.30 lakh per 10 grams and silver climbing to Rs 1.58 lakh per kilogram. This surge has prompted investors to reconsider their strategies: should they buy now or wait for a potential correction?

MCX Futures Surge

On the Multi Commodity Exchange (MCX), gold futures for December delivery experienced a significant rally, rising by Rs 3,580 (2.82%) to Rs 1,30,588 per 10 grams. Notably, on Friday, gold futures surged to an all-time high of Rs1,32,294 before settling at Rs1,27,008, marking a sharp decline from the peak.

Similarly, silver futures for December delivery rose by Rs 1,571 (1%) to Rs 1,58,175 per kilogram. Despite this gain, silver had previously dropped nearly 6% from record highs, reflecting the volatility in the market.

International Market Dynamics

Globally, gold prices have reached a record high of $4,359.40 per ounce, driven by factors such as geopolitical tensions, central bank purchases, and a weakening U.S. dollar. The dollar index has declined by approximately 9% in 2025, making gold more attractive to investors seeking safe-haven assets.

Silver has also witnessed a significant rally, surpassing $50 per ounce, a level not seen since 1980. This surge is attributed to a combination of industrial demand, particularly in electronics and solar energy, and investor interest as a hedge against inflation and currency fluctuations.

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Reasons Behind the Surge

Several factors have contributed to the recent surge in gold and silver prices:

Geopolitical Tensions: Ongoing conflicts and uncertainties have driven investors towards safe-haven assets like gold and silver.

Central Bank Purchases: Increased buying by central banks, especially in emerging markets, has bolstered demand.

Weakening U.S. Dollar: A decline in the value of the dollar has made gold and silver more appealing to investors holding other currencies.

Industrial Demand: Growing applications of silver in technology and renewable energy sectors have heightened its demand.

Disclaimer: The views expressed in this article are purely informational, and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks, and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds.