Silver prices in India maintained a strong upward trend this week, surging to Rs 2,40,000 per kg on December 26, 2025, after a sharp single-day rise of Rs 6,000. Over the last five trading sessions, prices have steadily advanced from Rs 2,19,000 per kg on December 22 to the current level, reflecting a total weekly gain of Rs 21,000 per kg. In the retail market, this translates to an increase of Rs 210 per 10 grams over the week. Gold prices edged higher, settling up by 0.15% at Rs 1,38,097, supported by expectations of further monetary easing by the US Federal Reserve and elevated geopolitical risks. US economic growth remained resilient in the third quarter, with GDP expanding at a faster pace, while labour market indicators continued to show gradual moderation. Despite a divided policy outlook among Fed officials, markets are still pricing in two rate cuts in 2026 as inflation cools and employment conditions soften. Geopolitical tensions involving Venezuela, particularly US actions to blockade oil tankers, have reinforced safe-haven demand across commodity markets.
Gold has now gained around 70% this year, positioning it for its strongest annual performance since 1979, underpinned by sustained central bank purchases and consistent ETF inflows. Physical market demand remained subdued at elevated price levels. In India, discounts widened to over a one-month high, with dealers offering up to $37 per ounce, while in China discounts touched $64 per ounce, the steepest in more than five years.
Silver prices extended their rally, settling higher by 1.88% at Rs 2,23,790, supported by rising expectations of US interest rate cuts and sustained safe-haven demand. Markets are increasingly factoring in two rate reductions next year as mixed US economic signals strengthen the case for policy easing. While third-quarter GDP expanded at a robust 4.3% annualised pace, softer consumer confidence in December and flat factory output in November have reinforced expectations that the Federal Reserve may turn more accommodative in the coming months.
Geopolitical tensions further underpinned prices after the US imposed a blockade on sanctioned Venezuelan oil tankers, lifting risk premiums across commodities. Year-to-date, silver has surged nearly 149%, driven by a persistent structural supply deficit, strong industrial consumption and its inclusion on the US Geological Survey’s list of critical minerals. Supply-side concerns
intensified as Chinese silver inventories dropped to their lowest level in a decade, following record exports of over 660 tonnes in October to ease a squeeze in London.
