Why Did Gold and Silver Prices Surge This Week?
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Synopsis
This week has been remarkable for precious metals, with gold and silver prices soaring to impressive heights. Discover what’s driving this surge and how it reflects the global market trends.
Key Takeaways
- Gold prices rose by Rs 4,000 per 10 grams this week.
- Silver prices jumped by Rs 17,000 per kilogram.
- Global market trends are significantly influencing domestic bullion prices.
- Gold and silver ETFs have provided impressive returns amidst market volatility.
- Strong industrial demand for silver is driving its price increase.
New Delhi, Dec 13 (NationPress) Prices of gold and silver experienced a remarkable uptick in the domestic market this week, largely influenced by significant gains in global bullion markets. Gold saw an increase of approximately Rs 4,000 per 10 grams, while silver experienced a surge of nearly Rs 17,000 per kilogram.
As per data from the India Bullion and Jewellers Association (IBJA), the rate of 24-karat gold jumped by Rs 4,188 to Rs 1,32,710 per 10 grams, up from Rs 1,28,592 last week.
The price of 22-karat gold rose to Rs 1,21,562 per 10 grams, increasing from Rs 1,17,777, while the 18-karat gold price climbed to Rs 99,533 per 10 grams, up from Rs 96,444.
Silver prices outperformed gold with a more substantial weekly increase.
The price of silver skyrocketed by Rs 16,970 to Rs 1,95,180 per kilogram, a sharp rise from Rs 1,78,210 per kilogram the previous week.
Earlier on Friday, silver reached the Rs 2 lakh mark, achieving an all-time peak of Rs 2,013.88 per kilogram during intraday trading on the Multi-Commodity Exchange (MCX).
The future contract expiring on March 5, 2026, witnessed a rise of over Rs 2,400 during the day, closing at Rs 2,004.62, which is an increase of Rs 1,520 compared to the last session's closing of Rs 1,98,942.
"Gold and silver ETFs have been the unsung heroes of the year, providing impressive returns even amidst volatile equity markets. Silver, in particular, has garnered attention due to a unique combination of surging industrial demand from sectors like solar, electric vehicles, and electronics, along with dwindling global supply, resulting in significant price hikes," stated Nikunj Saraf, CEO of Choice Wealth.
Gold, too, maintained its momentum, bolstered by ongoing central bank purchases and investors seeking refuge amid geopolitical tensions and inflation concerns, he added.
The gold future contract expiring on February 5 surged by 1.87 percent to close at Rs 1,34,948 per 10 grams on MCX on Friday. In the retail sector, the 24-carat gold price settled at Rs 132,710 per 10 grams, rising over Rs 4,600 from the previous day's closing of Rs 1,28,596 per 10 grams, according to IBJA.
The increase in domestic bullion prices is predominantly fueled by ongoing strength in international markets, with both precious metals hovering near their all-time highs.
On the COMEX, gold was trading at $4,328 per ounce, while silver was priced at $62 per ounce.
Point of View
The surge in gold and silver prices highlights the ongoing fluctuations in the global market, which can impact local economies and investors significantly. It’s essential for consumers and investors alike to stay informed about these trends to make educated financial decisions.
NationPress
13/12/2025
Frequently Asked Questions
What caused the rise in gold and silver prices?
The surge in gold and silver prices is largely attributed to strong gains in global bullion markets, along with increasing industrial demand for silver and persistent central bank buying of gold.
How much did gold prices increase this week?
Gold prices increased by approximately Rs 4,000 per 10 grams this week.
What is the current price of 24-karat gold?
The price of 24-karat gold is now Rs 1,32,710 per 10 grams.
Did silver prices rise significantly this week?
Yes, silver prices jumped by nearly Rs 17,000 per kilogram this week.
What factors are influencing the demand for silver?
The demand for silver is being driven by booming industrial applications, particularly in solar energy, electric vehicles, and electronics, along with tightening global supply.
