Indian gold and silver prices reached new all-time highs on September 22, 2025. This surge was driven by U.S. interest rate-cut expectations, worsening geopolitical tensions, and strong industrial demand.
At a global level, gold had cracked the $3,750-an-ounce mark and was almost touching $3,800, while silver prices also managed to break $44 an ounce, a peak not seen in 14 years.
This rally was also supported by a declining U.S. dollar, as market participants expected possible rate reductions by the U.S. Federal Reserve. Experts opine that two more rate reductions by the end of the year may cap gains in the U.S. dollar and treasury yields, hence supporting precious metal prices.
In India, gold futures for October on the Multi Commodity Exchange (MCX) were near ₹1.12 lakh per 10 grams, and December silver futures touched ₹1.33 lakh per kilogram, both record highs for the two metals. The fall in the Indian rupee against the U.S. dollar also helped push up domestic prices further.
Geopolitical uncertainties such as policy changes and trade tensions have also contributed immensely to sending investors into safe-haven assets such as silver and gold. Colin Shah, Managing Director of Kama Jewelry, said that the vehicle of American tariffs, as well as trade turmoil, has contributed to the attraction of gold as a haven asset worldwide.
Silver's price rise has been further underpinned by solid industrial demand, particularly from industries such as electronics, solar panels, and electric vehicles. The resulting demand has placed silver as a profitable alternative investment, especially as gold prices become unaffordable to most investors.
While global economic uncertainty persists, both silver and gold are expected to maintain their bullish trend, with experts predicting further appreciation over the next few months. Investors should keep a close eye on developments in US monetary policy and geopolitics, as these factors will significantly influence the direction of precious metal prices.