Even as gold touched an all-time high, cultural demand will continue to keep gold ownership alive in India, and silver’s role as an industrial input could propel its price above $50 an ounce, a report stated on Thursday.
Domestically, on Multi Multi-Commodity Exchange of India Limited (MCX), gold December futures were trading at Rs 1,28,080 per 10 grams, up 0.68 per cent, while silver December futures were trading at Rs 1,63,600 per kilogram, higher by 0.86 per cent (at the time of writing).
‘Demand for gold and silver remains upbeat’: Report
“We believe that while gold may not replicate its stellar YTD 2025 performance, its upward trajectory is far from over. The rise has entered a phase of structural endurance rather than speculative exuberance,” IANS, quoting the report from MP Financial Advisory Services, said.
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“Thanks to industrial demand, silver has the required merits to cross over the $50 mark this time,” the financial consultancy quoted.
Demand for gold and silver remains upbeat during India’s Diwali season as consumers adapt to all-time highs by adjusting their purchasing behaviours, it said.
Buyers like lighter, lower-carat pieces, utilised exchange and old-gold schemes and have tried digital gold and sovereign gold bonds, the report stated.
Gold rates went up from around $1,900 an ounce in November 2022 to around $3,850 by October 2025, with prices domestically going beyond Rs 1 lakh per 10 grams. Prices of silver went up from $24 per ounce to around $47 on the strength of industrial consumption in solar panels, electronics, and electric mobility.
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Reason for rally:
The gold rally was spurred by increased US rate-cut expectations, persistent central-bank demand, and industrial restocking in solar and electronics supply chains. Gold once again asserted itself as a stable holding asset in the face of macro uncertainty, while silver intensified the movement as the cyclical bellwether for a broader industrial upturn, the financial advisory stated.
As of June, the US, the biggest official gold holder, held 8,133 tonnes, followed by Germany (3,350 tonnes). Among the emerging markets, China (2,299 tonnes), India (880 tonnes), and Turkey (635 tonnes) have been net accumulators, highlighting a slow diversification from the US dollar, the report stated.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: zeebiz.com
