Why gold and silver prices skyrocketed up to 166% in 2025; check outlook for 2026

Gold prices in India ended at ₹1,37,700 per 10 gram on December 31, 2025, while silver closed at ₹2,39,000 per kg. On a year-on-year (YoY) basis, the yellow metal delivered 74.4% returns, rising from ₹78,950 per 10 gram on December 31, 2024. 

Meanwhile, the white metal gained 166.4% in 2025, growing from ₹89,700 per kg on December 31, 2024 to nearly ₹2.4 lakh per kg at the end of the previous calendar year. 

In international markets as well, gold and silver recorded remarkable rallies in 2025. The yellow metal was at $4,308.30 per ounce on December 31, up 65.3% from $2,605.77 per ounce on December 31, 2024. 

Silver was priced at $71.67 per ounce at the end of 2025, against $28.97 per ounce on December 31, 2024. 

Today, on January 2, gold ended at ₹1,39,440 per 10 gram in Delhi, while silver jumped to ₹2,41,400 per 10 gram. In overseas markets, spot gold was at $4,392.94 per ounce, and spot silver was at $74.52 per ounce.

Gold and silver’s remarkable bull run in 2025

• Silver consistently outperformed gold during the year in terms of returns.

• The white metal shone brighter due to its rising industrial demand in crucial sectors like EV, solar and electronics. The growing demand, with supply shortages in global markets, made 2025 the year of silver. The white metal surprised everyone with its rally last year and is expected to make noise this year as well.

• The precious metals act as a hedge against uncertainty, as investors run to them when other markets turn risky. The last calendar year, which ended this week, saw a series of global concerns: Geopolitical tensions, market volatility, trade war and tariff concerns and falling currencies.

• Silver typically rises when gold does, so when the yellow metal rose in 2025 due to global dynamics, silver followed suit.

• On top of this, increased central bank gold buying boosted the demand for the yellow metal further.

• Analysts expect gold and silver to extend their gains in 2026 as well. The bullish trend is likely to continue: J.P. Morgan Global Research has forecasted gold prices to average $5,055 per ounce by the final quarter of 2026 and rise to $5,400 per ounce by the end of 2027. 

Gold price forecast

According to J.P. Morgan Commodities Research, here are the gold price forecasts ($/per ounce, quarterly and annual averages)

“While this rally in gold has not, and will not, be linear, we believe the trends driving this rebasing higher in gold prices are not exhausted,” said Natasha Kaneva, head of Global Commodities Strategy at J.P. Morgan. “The long-term trend of official reserve and investor diversification into gold has further to run. We expect gold demand to push prices toward $5,000/oz by year-end 2026.”