Gold Rate In India Rallies 39% YTD; Silver Up 29%: What Should Be Investors' Strategy For The Rest Of 2025?

Gold Rate in India: Multiple factors related to global trade, geopolitics, economic growth, etc have fuelled gold's safe haven rally since the beginning of the year 2025. Silver rates have also jumped significantly. In September, the gold price has shattered multiple records in just six days. The strong rally in precious metals has forced investors to rethink their investment strategy for the rest of the year 2025.

Gold rate in India created a fresh record on Saturday, September 6, after reaching to a record high mark. The price of 24 karat gold in India surged to Rs 10,849 per gram, and, the price of 22 karat gold jumped to Rs 9,945 per gram on Saturday.

Silver rates in India have surged around 29% since the beginning of the year. Silver rate today stood at Rs 128 per gram and at Rs 1,28,000 per kilogram.

Gold rate in India has surged nearly 39% since the beginning of the year 2025 amid rising geopolitical uncertainty. The recent gold price rally over past few days has come amid expectations of a US Fed rate cut, the Indian currency's weak performance, and fading global confidence in US fiscal stability.

Will Gold Price Rally Continue?

"The present rally has set in volatility. Gold and Silver look positive and is expected to continue its bullish trend. Silver bullishness stems from supply deficits, rising investment demand, as also reflected in the Silver ETF holdings and Industrial demand," noted NS Ramaswamy, Head of Commodity and CRM, Ventura.

He also added that gold price rally in the remaining months of 2025 will hugely depend on a host of factors like US Fed interest rate decisions, future discourse of US President Donald Trump-led tariff policies, and central bank's gold buying spree.

"Gold's trajectory will depend on macro variables like U.S. yields, the dollar, and central bank buying. With the U.S. Treasury's annual interest bill now exceeding $1.2 trillion, investor appetite for government debt is waning, strengthening gold's case as a long-term store of value," explained Harshal Dasani, Business Head at Invasset.

Gold, Silver Price Outlook 2025: What Should Be Investors Strategy?

"For Gold, Buy on dips stance can be maintained from a medium to long term perspective. On domestic front, Rs 99,000-1,00,000 is a strong support zone, any dip towards Rs 1,03,000-1,03,500 can be used as a buying zone, for the targets of Rs 1,10,000-1,12,000. Similarly, assuming USDINR at 88 on COMEX, any dip towards $3450 can be used as an buying zone for the targets of $3700-3800," explained Manav Modi, Analyst - Precious Metal -Research, Motilal Oswal Financial Services Ltd.

Akin to gold, silver is poised for further upside. "Long term support remains near ₹ 1,08,000 - 1,10,000. After a sharp rally some profit booking is warranted, any dip towards ₹1,18,000 till 1,15,000 can be used as an accumulation zone for targets of ₹1,35,000 followed by ₹ 1,50,000 on the domestic front & assuming USDINR at 88.5 : $45, followed by $50 on Comex. Buying on dips is recommended from a 12-15 month perspective," he added.

The international gold price surged around 1% on Friday, September 5, to a fresh record high of $3,595 per ounce, according to Trading Economics.

The recent surge above $3,500 has come after the precious metal was trading in a $3,400-3,500/oz band for five months. The recent breakout above $3,500/ounce indicates that the precious metal's price can surge further to $3,800-4,000/oz in 2025, noted Dasani.

"Silver's dual nature-both monetary hedge and industrial metal-makes it even more volatile but also more rewarding. If it clears the $50-52/oz multi-decade resistance, silver could enter uncharted price territory in 2025, fuelled by solar demand and physical shortages. Investors should expect both metals to remain constructive through next year, with silver showing relatively higher beta," added Dasani.

Given the present macroeconomic and geopolitical situation, NS Ramaswamy, expects gold and silver to end in a wider band of price level. Gold is expected to end the year in a price band of $3450 - $3750 per ounce. Whereas, silver may end at a price band of $41 -$44.

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