Precious metals have delivered a blockbuster performance in India this year, with gold and silver posting some of their strongest annual gains in recent memory. As of early December 2025, gold prices have skyrocketed by 66% year-to-date, while silver has astonishingly jumped 85%, creating an extraordinary period for investors in the sector.
What's Driving The Meteoric Rise?
The powerful rally has been fueled by a confluence of global and domestic factors. Renewed anticipation of an interest rate cut by the U.S. Federal Reserve, a softer U.S. dollar, and a weakening Indian rupee have all combined to push prices higher. Notably, silver has sharply outperformed its yellow counterpart, becoming the standout asset of the year.
On Tuesday, however, markets saw a slight pullback as traders locked in profits after a steep climb. On the Multi Commodity Exchange (MCX), gold opened 0.41% lower at ₹1,30,109 per 10 grams, compared to Monday's close of ₹1,30,652. MCX silver began 0.73% down at ₹1,80,701 per kilogram, against its previous finish of ₹1,82,030.
This dip follows a session where gold hit a six-week high, supported by Fed rate cut expectations and speculation about potential leadership changes at the central bank. The rupee, which recently touched record lows against the dollar, has further inflated domestic precious metal prices.
Can Silver Touch The ₹2 Lakh Milestone?
With silver already more than doubling in value in 2025 and trading above ₹1.80 lakh per kg, the big question on every investor's mind is whether it can breach the psychological barrier of ₹2 lakh per kg before the year ends.
Sugandha Sachdeva, Founder of SS WealthStreet, asserts that silver's structural momentum remains robust. "Silver has dramatically outperformed, marking its seventh consecutive monthly gain," she noted, highlighting that international spot silver comfortably breached a key resistance level at USD 54.46 per ounce to rally to USD 56.53.
Sachdeva points to massive industrial demand from sectors like solar panels, electronics, electric vehicles, and pharmaceuticals as a key fundamental driver. This is coupled with rapidly depleting inventories in global warehouses in London and China. "The US adding silver to its 2025 critical minerals list underscores its strategic value in clean-energy technologies," she added.
Brokerage firm Motilal Oswal expects the rally to extend well into 2026. Its latest outlook projects silver to rise to USD 75 per ounce, driven by a deepening global supply deficit and soaring industrial consumption. The brokerage estimates that, assuming stable currency and duty structures, silver could climb to ₹2.3 lakh per kg in the Indian market.
Technical View and Market Sentiment
Analysts believe the technical setup continues to favor an extended rally for silver. Aamir Makda, Commodity & Currency Analyst at Choice Broking, stated that the white metal remains in a strong uptrend following a long-awaited breakout.
"We can anticipate that silver's outperformance is likely to continue in the upcoming sessions," Makda said. He identified key support zones at ₹1,42,285 and ₹1,21,437, with the next major target at ₹2,00,000 per kg. His advice to traders is to adopt a 'buy-on-dips' strategy, seeking long positions during any corrective phases.
Globally, the appetite for safe-haven assets remains strong. Central banks purchased nearly 600 tonnes of gold in the first nine months of 2025, while global gold ETFs witnessed 450 tonnes of inflows—the highest since 2020.
As an exceptional year for precious metals nears its end, all eyes are on silver's trajectory. Whether it achieves the coveted ₹2 lakh per kg milestone will depend on the interplay of global monetary policy, relentless industrial demand, and ongoing macroeconomic uncertainties.
Disclaimer: The views and recommendations above are from individual analysts or broking firms. Investors are advised to consult certified experts before making any investment decisions.
