Gold & Silver Hit Record Highs: Can Gold Touch Rs 1.25 Lakh by Diwali?

Business News:Gold and silver have given excellent returns to investors this year. Gold price on MCX has now crossed Rs 113,000 per 10 grams and silver has crossed Rs 134,000 per kg. In 2025, gold has recorded a rise of 47% so far, while silver has given a return of 55%. Weakness in the rupee against the dollar, signs of cutting interest rates in the US and strong demand for silver are the main reasons for this boom.

Recent performance of Gold & Silver

• 1 week: gold 1%, silver 3%
• 1 month: gold 13%, silver 17%
• 1 year: gold 50%, silver 52%

Know the reasons for the rise in prices

• Rupee weakness: Gold and silver prices were strengthened due to the weakening of the rupee against the dollar.
• Territory change in international interest rates: America's Federal Reserve recently reduced the 0.25% interest rate and indicated two more cuts by the end of this year. This weakened the dollar and increased demand in gold and silver.
• Global Volatility: Russia-Ukraine, China-Taiwan and uncertainties in the Middle East are strengthening gold and silver as 'safe havens.'
• Strong demand for silver: Industrial need and an increase in ETF investment supported silver prices.
• Increase in Local demand: Gold prices saw a boom due to shopping for jewelry in Navratri and wedding season.

Opinion of experts

Rajesh Rokde, GJC Chairman, said, "Gold prices are expected to rise further. Due to Diwali and weddings, demand will increase further."

Saumil Gandhi of HDFC Securities said, "Gold and silver are at a record level domestically as per the rapid trend in the international market. The soft policy of the Federal Reserve is likely to further strengthen precious metals."

Aksha Kamboj, IBJA vice president, said, "Profit booking is possible, but the perception is positive. Gold is getting good support at current levels."

Gold and silver on MCX are giving high returns to investors this year. Dollar weakness, the soft policy of the Federal Reserve, global instability and domestic demand are all together at record levels. Increased shopping for jewelry in Navratri and wedding season has further promoted this boom.