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Gold In 2025: After Over 50 All-Time Highs & 65% Return, What’s Next For Bullion In 2026?
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The year 2025 has been one of the best years for gold in decades, and silver outpaced gold to witness its best year since 1971. Here’re factors that will move prices in 2026.
Gold prices have increased in 2025 due to a combination of factors, including heightened geopolitical and global economic uncertainties, increased gold buying by global central banks, momentum buying by ETFs, as well as a weakening dollar and interest rate cuts across the globe.
Gold & Silver Price Updates: The year 2025 has been one of the best years for gold in decades, delivering over 60 per cent returns after hitting over 50 all-time highs. Silver outpaced gold to witness its best year since 1971. Though the precious metals are showing signs of further increase in prices, analysts said the outlook depends upon the geopolitical risks, ETF buying, central bank buying and economic situation next year.
Gold & silver prices in 2025
In the international market, gold prices had stood at nearly $2,600 an ounce as of January 1, 2025, and have consistently increased during the year. It has remained above all its moving averages this year, including the 200-day exponential moving average (DEMA), 100-DEMA, 50-DEMA, and 20-DEMA. The price now stands at about $4,300 an ounce as of December 13, 2025, which is a 65 per cent surge in prices during the calendar year 2025.
In India, gold prices in Mumbai had stood at nearly Rs 78,000 per 10 grams as of January 1, 2025, which has now increased to about Rs 1,34,000 per 10 grams. This is a jump of roughly 72 per cent during the year 2025.
Silver prices in the international market have also surged by 121% this year to about $62 an ounce as of December 13, 2025, compared with nearly $28 at the beginning of the year.
Gold and silver prices increased faster in India than the international market due to the rupee depreciation against the US dollar (which has hit a record low of 90.5 against the dollar), making gold (which is mainly imported) costlier for Indian consumers.
What factors led to such an increase in gold prices this year?
Gold prices have increased in 2025 due to a combination of factors, including heightened geopolitical and global economic uncertainties, increased gold buying by global central banks, momentum buying by ETFs, as well as a weakening dollar and interest rate cuts across the globe.
According to a Gold Return Attribution Model (GRAM) analysis, ‘risk & uncertainty’ contributed 11.5 percentage points to gold’s return this year and ‘opportunity cost’, which stems from weakening of dollar and interest rate cuts, accounted for another 10 percentage points.
“The contributions of the four main factors that drive gold have been usually balanced this year,” the World Gold Council said.
Why did silver prices rise faster than gold?
While gold demand in 2025 was driven largely by safe-haven buying and a lower opportunity cost, silver demand was supported not only by safe-haven flows but also by strong industrial consumption, specifically from the green energy transition.
“Demand from the Solar Photovoltaic (PV) sector has more than doubled in just four years, from 94.4 Moz in 2020 to 243.7 Moz in 2024. Solar alone accounted for nearly 21% of total demand in 2024, fundamentally altering the metal’s usage profile,” Axis Securities said in its latest report on silver.
It said the silver market has remained in deficit since 2021, with a cumulative shortfall of nearly 700 Moz over the 2021-2025 period. According to Refinitiv, the silver market is expected to continue in deficit in 2026, with a projected shortfall exceeding 100 Moz.
“Fears of impending US import tariffs have triggered a flight of physical metal toward US markets, sparking a historic “squeeze” in the futures market. Throughout the year, COMEX futures have persistently traded at a premium to London spot prices,” said Axis Securities.
What is the outlook for 2026?
Analysts said gold prices in 2026 depend upon macroeconomic fundamentals, geopolitical risks, central bank demand, and recycling supply.
“Recycling trends could significantly influence the market. Recycling has been unusually soft, in part due to the growing use of gold as loan collateral, particularly in India, where more than 200 tonnes of old jewellery have been pledged this year. Limited recycling supports prices, but a rise in distressed liquidation of this collateral could push secondary supply higher and weigh on the market,” according to a Delhi-based bullion market expert.
On the silver price outlook, Axis Securities said, “Prices exceeding $60/oz may begin to trigger demand destruction or thrifting/substitution (using less silver per unit) in the industrial sector. Global economic deceleration, specifically a contraction in high-tech manufacturing or electronics, could weigh on silver prices.”
Click here to add News18 as your preferred news source on Google. December 13, 2025, 14:38 IST
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New Delhi: The Cabinet on Sunday approved the Union Budget 2026-27 during a meeting in Parliament chaired by Prime Minister Narendra Modi. A meeting of the Union Cabinet was held at Sansad Bhawan at 10 a.m., and after the Cabinet’s approval, Finance Minister Nirmala Sitharaman proceeded to Parliament to present the Budget.
Earlier, FM Sitharaman met President Droupadi Murmu and offered her a copy of the digital budget. The President also offered ‘dahi-cheeni’ (curd and sugar) to Sitharaman when she arrived at the Rashtrapati Bhavan. The Finance Minister was seen carrying her trademark ‘bahi-khata’, a tablet wrapped in a red-coloured cloth bearing a golden-coloured national emblem on it.
Minister of State for Finance Pankaj Chaudhary, Chief Economic Advisor Dr V. Anantha Nageswaran, Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal and other officials were seen accompanying the Finance Minister. Sitharaman was set to present her ninth consecutive Union Budget in the Lok Sabha. In 2021, she switched to using a digital tablet to carry the Budget papers, further promoting a modern and eco-friendly approach.
The ‘bahi-khata’ is a red pouch that holds the digital tablet containing the Budget documents. This year, Sitharaman opted for a deep maroon Kanjeevaram saree from Tamil Nadu. The saree featured a deep maroon base with a contrasting border and subtle gold detailing, paired with a yellow blouse.
The Budget is likely to strike a deft balance of sustaining growth momentum and maintaining fiscal consolidation. It also needs to address near-term challenges emanating from unprecedented geopolitical flux, said economists. According to economists, the budget is likely to focus more on capital expenditure, especially in sectors deemed to be strategically important owing to prevailing geopolitical compulsions.
While the FY26 Budget was more tilted towards stimulating middle-class consumption with tax reliefs, the FY27 Budget’s approach to stimulating consumption will be selective, they added.
Business
Education Budget 2026 Live Updates: What Will The Education Sector Get From FM Nirmala Sitharaman?
Union Education Budget 2026 Live Updates: Union Finance Minister Nirmala Sitharaman will present the Union Budget 2026–27 on February 1, with a strong focus expected on the Education Budget 2026, a key area of interest for students, teachers, and institutions across the country.
In the previous budget, the Bharatiya Janata Party government announced plans to add 75,000 medical seats over five years and strengthen infrastructure at IITs established after 2014. For 2025, the Centre had earmarked Rs 1,28,650.05 crore for education, a 6.65 percent rise compared to the previous year.
Meanwhile, the Economic Survey 2025–26, tabled in the Parliament of India, points to persistent challenges in school education. While enrolment at the school level is close to universal, this has not translated into consistent learning outcomes, especially beyond elementary classes. The net enrolment rate drops sharply at the secondary level, standing at just over 52 per cent.
The survey also flags concerns over student retention after Class 8, particularly in rural areas. It notes an uneven spread of schools, with a majority offering only foundational and preparatory education, while far fewer institutions provide secondary-level schooling. This gap, the survey suggests, is a key reason behind low enrolment in higher classes.
Stay tuned to this LIVE blog for all the latest updates on the Education Budget 2026 LIVE.
The Oil and Gas Regulatory Authority (Ogra) has increased the price of liquefied petroleum gas (LPG). According to a notification, the price of LPG has risen by Rs6.37 per kilogram. Following the increase, the price of a domestic LPG cylinder has gone up by Rs75.21. The revised prices have come into effect immediately.
The rise in LPG prices has added to the inflationary burden on household consumers.
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