Bullion Surges to New Peaks in India as Safe‑Haven Demand Intensifies

Gold and silver prices in India have climbed to unprecedented levels, driven by a combination of strong stockist buying, global uncertainty, and heightened safe‑haven demand. The domestic bullion market mirrored sharp rallies in international trading, where both metals recently touched historic highs.

Record Prices in the Indian Market

• Gold surged to around ₹1.45 lakh per 10 grams, marking its highest level to date, supported by aggressive buying from stockists and sustained investor interest.
• Silver rose even more sharply, reaching ₹2.71 lakh per kilogram, continuing a multi‑week upward trend and reflecting both industrial demand and speculative momentum.
  These figures align with broader national trends reported across major cities, where 24‑carat gold has been trading above ₹1.42 lakh per 10 grams and silver has hovered near ₹2.70 lakh/kg.

Global Drivers Behind the Rally

International markets have played a decisive role in lifting domestic prices:

• Spot gold recently crossed $4,600 per ounce, its highest level ever, while silver climbed above $83 per ounce, also a record.
• Analysts attribute the surge to:
• Escalating geopolitical tensions, including unrest in Iran and the ongoing Russia–Ukraine conflict.
• Renewed concerns over the independence of the US Federal Reserve following reports of subpoenas and investigations involving Fed Chair Jerome Powell, which weakened the US dollar and boosted bullion demand.
• Expectations of easier monetary policy in the US, supported by weak employment data and rising political pressure on the Federal Reserve.

Why Stockists Are Buying Aggressively

Domestic stockists have increased purchases amid:

• Anticipation of further price gains, supported by global cues.
• Strong retail demand during the ongoing wedding and festival season.
• A weaker rupee, which has made imported bullion more expensive, encouraging early stocking.

Expert Views

Market analysts note that the rally reflects a structural shift rather than a short‑term spike:

• Gold’s upward momentum is underpinned by persistent global risk aversion and strong central‑bank buying across Asia.
• Silver’s rise is supported not only by safe‑haven flows but also by robust industrial demand from sectors such as solar energy, electric vehicles, and electronics.
• Experts caution that while consolidation is possible after such rapid gains, a steep correction appears unlikely without a major shift in global macroeconomic conditions.

Outlook

Precious metals are expected to remain firm in the near term. Analysts suggest:

• Gold may continue to benefit from geopolitical uncertainty and expectations of US rate cuts.
• Silver could see continued volatility but retains strong long‑term fundamentals due to industrial demand.
• Investors are advised to avoid chasing prices at record highs and instead consider staggered buying or waiting for minor dips, especially in silver, which tends to experience sharper swings.