Gold Soars 66% YTD, Silver Jumps 85%: Will The White Metal Touch Rs 2 Lakh Per Kg In 2025? | Savings and Investments News

Gold And Silver Price Prediction

Gold, Silver Rates In India 2025: Gold and silver prices in India have delivered one of their strongest annual performances in recent history. As of early December 2025, gold has surged 66% year-to-date, while silver has rallied an impressive 85%, making 2025 a standout year for precious metal investors. Expectations of a US Federal Reserve rate cut, a softer dollar, and a weakening Indian rupee have together powered the rally, with silver significantly outperforming gold.

On Tuesday, both metals opened lower on the Multi Commodity Exchange (MCX) as traders booked profits after the sharp gains seen in the previous session. MCX gold opened 0.41% lower at Rs 1,30,109 per 10 grams, compared to Monday’s close of Rs 1,30,652. MCX silver also began 0.73% lower at Rs 1,80,701 per kg, against its previous close of Rs 1,82,030.

The mild pullback follows gold touching a six-week high on Monday, supported by fresh expectations that the US Federal Reserve could cut interest rates this month, along with speculation around potential changes in the Fed’s leadership. A weakening rupee, which recently slipped to record lows against the US dollar, has further pushed up domestic precious metal prices.

Globally, the dollar index slipped 0.03% to 99.43, lending support to dollar-denominated commodities such as gold and silver. International spot gold eased 0.2% to USD 4,222.93 per ounce after hitting its highest level since October 21. Meanwhile, US gold futures for December delivery fell 0.4% to USD 4,256.30 per ounce.

Silver continues to stand out as the stronger performer. Over the past three months alone, gold has gained around 25%, while silver has soared more than 40%, repeatedly testing record highs amid tightening physical supplies and expectations of looser global monetary policies.

Silver Market

Silver squeeze is for real, supporting higher prices. China’s silver exports reached an all-time high of more than 660 tonnes in October, while Chinese inventories fell to their lowest level in ten years as a result of large shipments to London brought on by a supply squeeze.

The silver market is expected to remain in deficit in 2025, marking the fifth consecutive year. Recent conditions have led to a significant liquidity squeeze, causing lease rates to soar and a high volume of deliveries into CME vaults due to tariff concerns in the US.

Silver has been officially classified as a critical mineral by the US government. These changes occur amid heightened macroeconomic and geopolitical risks, prompting investors to increase their allocations to precious metals for better portfolio diversification.

Can Silver Cross Rs 2 Lakh Per Kg?

With silver already more than doubling in 2025 and currently trading above Rs 1.80 lakh per kg on MCX, investor focus has shifted to whether the white metal can touch Rs 2 lakh per kg in 2025.

Sugandha Sachdeva, Founder of SS WealthStreet, believes silver’s structural momentum remains firmly intact. She noted that silver has dramatically outperformed, recording its seventh consecutive monthly gain and hitting a record high of Rs 1,75,484 per kg in the March contract. International spot silver has also breached its long-standing resistance, rallying to USD 56.53 per ounce, comfortably above its earlier ceiling of USD 54.46 per ounce.

Sachdeva added that the fundamentals remain strong, supported by massive industrial demand from solar panels, electronics, electric vehicles and pharmaceuticals, along with rapidly declining inventories in global warehouses. China and London bullion stocks have tightened sharply this year. She also pointed out that the US adding silver to its 2025 critical minerals list underscores its strategic importance in clean-energy technologies and signals that major economies may prioritise domestic needs before exports.

Brokerage firm Motilal Oswal expects the rally to extend well into 2026. Its latest outlook projects silver could rise to USD 75 per ounce, driven by a deepening global supply deficit and soaring industrial consumption. The brokerage estimates silver could climb to as high as Rs 2.3 lakh per kg in India, assuming current currency levels and duty structures remain stable.

The report further highlights that silver’s rally has been backed by a weakening US dollar index below 100, relatively stable rupee movement, and changing dynamics in the global bullion market. Central banks have bought nearly 600 tonnes of gold during the first nine months of 2025, while global gold ETFs recorded inflows of 450 tonnes — the highest since 2020 — signalling strong global demand for safe-haven assets.

Technical view: Momentum remains strong

From a technical perspective, analysts believe silver continues to show strong upside momentum. Aamir Makda, Commodity and Currency Analyst at Choice Broking, said that silver remains in a solid uptrend following its long-awaited breakout.

He noted that silver’s outperformance is likely to continue in the near term. According to him, key support levels lie at Rs 1,42,285 and Rs 1,21,437, while the next major psychological resistance is placed at Rs 2,00,000 per kg. Makda advised traders to follow a buy-on-dips strategy and look for long positions during corrective phases.

As 2025 heads toward its close, both gold and silver remain firmly in focus. Investors will be closely watching whether silver can achieve the next major milestone of Rs 2 lakh per kg, as global uncertainties, strong industrial demand and evolving monetary policy expectations continue to shape the outlook for precious metals.

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.