Patna: Gold and silver prices rose sharply on Thursday after three consecutive days of decline, with both precious metals regaining momentum in the domestic market.
According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold increased by Rs 954 to Rs 1,34,415 per 10 grams on January 2, up from Rs 1,33,461 a day earlier. Silver prices surged even more steeply, rising by Rs 5,656 to Rs 2,34,906 per kilogram, compared with Rs 2,29,250 per kg on Wednesday.
The rebound comes days after both metals touched record highs. On December 29, gold hit an all-time high of Rs 1,38,161 per 10 grams, while silver peaked at Rs 2,43,483 per kilogram.
Why prices vary across cities
IBJA rates do not include 3% goods and services tax (GST), making charges or jewellers’ margins, which explains price differences across cities. These benchmark prices are used by the Reserve Bank of India to determine Sovereign Gold Bond rates and are also referenced by banks while setting gold loan values.
A stellar year for precious metals
Gold and silver posted exceptional gains in 2025. Gold prices rose by Rs 57,033, or 75%, over the year, climbing from Rs 76,162 per 10 grams on December 1, 2024 to Rs 1,33,195 at the end of 2025.
Silver outperformed even gold, gaining Rs 1,44,403, or 167%, during the same period. Prices increased from Rs 86,017 per kg at the end of 2024 to Rs 2,30,420 per kg by December 31, 2025.
What is driving prices higher?
Analysts point to a combination of global and structural factors behind the rally.
Gold prices have been supported by a weaker US dollar following interest rate cuts, which have lowered the opportunity cost of holding the metal. Heightened geopolitical tensions, including the ongoing Russia-Ukraine war, have also pushed investors towards gold as a safe-haven asset. In addition, central banks — particularly China’s — have significantly increased their gold reserves, buying more than 900 tonnes over the year.
Silver’s surge has been driven largely by industrial demand, especially from the solar, electronics and electric vehicle sectors. Concerns over potential US trade tariffs and supply constraints have prompted companies to stockpile silver, while manufacturers fearful of production disruptions are buying in advance, adding further upward pressure on prices.
Prices may rise further
Ajay Kedia, director of Kedia Advisory, said strong demand for silver is expected to continue. “In this scenario, silver could reach Rs 2.75 lakh per kg this year,” he said. Gold demand also remains robust, and prices could cross Rs 1.50 lakh per 10 grams by the end of the year, he added.
What buyers should keep in mind
Experts advise consumers to purchase only BIS-certified gold with a hallmark indicating purity, and to cross-check daily prices from reliable sources such as the IBJA before buying.
For silver, basic checks include ensuring it does not stick to a magnet, melts ice quickly, has no distinct smell, and leaves a black mark when rubbed with a white cloth — common indicators of genuine silver.
