New Delhi/Patna: Gold and silver prices recorded another sharp increase on May 12, continuing a year marked by significant volatility in the bullion market.
According to the India Bullion and Jewellers Association, the price of silver rose by Rs 11,620 per kilogram to reach Rs 267,820. On May 11, silver had been trading at Rs 256,000 per kilogram.
Gold prices also climbed substantially.
The price of 10 grams of 24-carat gold increased by Rs 1,592, taking it to Rs 151,954, compared with Rs 150,362 a day earlier.
The rise comes despite a recent public appeal by Narendra Modi urging people to avoid purchasing gold.
Bullion Prices Continue Strong Rise In 2026
Precious metal prices have seen major fluctuations throughout 2026.
According to market data:
- gold has risen by approximately Rs 18,755 so far this year
- silver has increased by around Rs 37,400 per kilogram
On December 31, 2025, 10 grams of gold was priced at about Rs 133,000. It has now crossed Rs 152,000.
Silver, which stood near Rs 230,000 per kilogram at the end of 2025, has climbed to around Rs 268,000.
Bullion prices also touched record highs earlier this year:
- gold reached Rs 176,000 on January 29
- silver touched Rs 386,000 per kilogram during the same period
Why Gold Prices Are Rising
Analysts cited multiple factors behind the latest rally in gold prices.
Iran-Israel Tensions
Escalating geopolitical tensions in the Middle East have pushed investors towards gold, traditionally viewed as a safe-haven asset during periods of uncertainty.
Weakening US Dollar
A decline in the value of the US dollar in international markets has boosted global demand for gold, contributing to higher domestic prices.
Wedding Season Demand
India’s ongoing wedding season has also triggered increased demand for jewellery, adding upward pressure on prices.
Silver Prices Driven By Industrial Demand
Silver prices have also risen sharply due to increasing industrial usage.
The metal is widely used in:
- electric vehicle manufacturing
- solar panel production
Growing global demand in both sectors has fuelled higher silver consumption.
Analysts also pointed to declining inventory levels on major international exchanges, which have reportedly intensified aggressive buying activity through short covering.
Market experts noted that silver often experiences heightened volatility when gold prices rise sharply, leading to increased investor interest in the metal.
