Gold and silver prices have been breaking records consistently this year. On Tuesday, 24-carat gold on the MCX surpassed ₹1.38 lakh per 10 grams, while silver stood at ₹216,596 per kg. Three main reasons are behind the surge: rising geopolitical tensions, global...

Gold and silver prices have been breaking records this year. Although gold prices dipped some time ago, they have rebounded sharply before the end of 2025. On Tuesday, the price of 24-carat gold on the Multi Commodity Exchange (MCX) surpassed ₹1.38 lakh per 10 grams.

According to the Indian Bullion Jewellers Association (IBJA), 24 carat gold closed at Rs 1,33,970 on Monday, but as soon as it opened on Tuesday, it rose by Rs 2163 to reach Rs 1,36,133 per 10 grams. At the same time, the price of spot gold in the Asian market was at a lifetime high level of $ 4,445.69 per ounce. Silver prices also saw a jump. Silver reached Rs 2,16,596 per kg on MCX. Silver price was also trading at $ 69.15 per ounce in the international market.

Three major reasons behind the sudden rise in gold prices

Gold prices have surged a staggering 70% so far this year. A slight decline was observed in December, but gold prices rebounded sharply in the final days of the month. Investors are once again turning to gold as a safe haven. Three main reasons for this are related to the United States.

1. Geopolitical tensions

The primary reason is rising geopolitical tensions around the world. The United States has intensified its efforts to seize tankers carrying Venezuelan oil. This has impacted energy supplies and increased global tensions, leading investors to turn to gold, a safe haven.

2. Central banks' purchases of gold

Another major factor is the purchase of gold by central banks around the world. A recent report indicated that for the first time since 1996, the share of gold in global central bank reserves has exceeded that of the US Treasury. Central banks have purchased approximately 1,000 tons of gold annually since 2022. This purchase has also pushed gold prices higher.

3. US Fed hints at rate cut

The third reason is the US Federal Reserve's (FED) signal of a rate cut. The market is expecting US interest rates to fall further in 2026. Federal Reserve Governor Christopher Waller's signals supported safe-haven assets like gold, leading to a rise in gold prices.

What do the experts say?

Experts say that gold and silver will always remain safe bets for investors, especially during times of global economic and political instability. If you're looking to invest, it's important to be vigilant about fluctuations in gold and silver prices. Gold has surprised investors several times in 2025, and before the end of the year, it's expected to surge again like a rocket. Gold and silver prices will remain a focus of investors' attention until the end of this year.

PC:Punjab Kesari