Gold, silver rise to fresh peaks; domestic futures at new lifetime highs. Why are precious metals on a bull run?

Gold is back at it again, rising by ₹1,950 to hit a fresh peak of ₹1,27,950 per 10 gram in Delhi on Monday, driven by safe-haven demand amid renewed US-China trade tensions. The yellow metal declined in the previous session on Friday.

The precious metal of 99.5% purity (24K) closed at ₹1,26,000 per 10 grams on Friday, as per the All India Sarafa Association.

Silver, continuing its bullish momentum, advanced ₹7,500 to another lifetime high of ₹1,79,000 per kg on Monday after jumping ₹8,500 to hit a new record of ₹1,71,500 per kg on Friday. 

In the domestic futures trade, gold contracts for December delivery hit a fresh peak of ₹1,24,140 per 10 gram on the Multi-Commodity Exchange, increasing by 2.2% (₹2,776). 

Silver futures also witnessed robust traction, increasing by as much as 4.8% (₹7,034) to an all-time high of ₹1,53,500 per kg on the MCX after closing at ₹1,46,466 per kg on Friday. 

Silver Exchange-Traded Funds (ETFs) have also been outperforming this year, with most delivering more than 75% returns over the one-year period ending October 9, 2025, according to AMFI data. 

In the overseas markets, spot gold rose by nearly 2% to hit a fresh record high of $4,084.99 per ounce on Monday. Further, spot silver jumped nearly 3% to hit a fresh all-time high of $51.74 per ounce in the global markets.

"Gold prices rose sharply higher as renewed US-China trade tensions reignited safe-haven demand," a PTI report quoted Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, as saying.

"This geopolitical tension, along with sustained demand from investors seeking safety, continues to keep gold's outlook bullish," Trivedi said.

US President Donald Trump on Friday threatened to impose an additional 100% tariff on Chinese goods from November 1 in response to Beijing's new export controls on rare earth minerals.

Trump, however, later showed openness to negotiate ahead of a possible meeting with President Xi Jinping later this month, saying that trade relations with China will all be fine.

The everlasting rise of silver and gold

Silver prices in Delhi have now increased by ₹25,000 in the last four trading sessions. From the ₹94,500 per kg level on last Diwali, silver prices have climbed over 89.4%, standing at ₹1.79 lakh per kg today.

This near 90% jump is spectacular for the white metal, surpassing even gold in terms of returns delivered year-to-date (YTD). 

Gold has also made remarkable strides this year and is currently up over 62% when compared to the start of 2025. 

5 key reasons gold is rising

Silver rises with gold, but some specific factors have also been boosting the white metal: 

The US-based Silver Institute recently projected a fifth straight annual supply deficit for the metal in 2025, signalling a deep structural tightness in the market.

Increasing hopes of a rate cut by the US Federal Reserve and further weakening in currency markets have been supporting the rise of gold and silver further.