Gold & Silver Prices Breach INR 1 Lakh in India - Check Out the Stunning Reasons

India‘s bullion market is setting new records with both gold and silver prices breaching the INR 1-lakh mark in spot markets. The 24-Carat gold price in India currently stands at INR 1,01,080 per 10 grams. MCX gold price in India is a shade below INR 1 lakh at INR 99,300 till 10.35 a.m. on June 19, 2025. While silver breached the INR 1-lakh mark for the first time in June 2025. It’s currently trading at 1,12,000 per kg.

The growing price reflects the growing demand for the bullion market amid the geopolitical crisis shaping the global economy. Let‘s talk about the reasons in greater detail. But before that, let’s check out some stunning stats concerning gold prices in India and silver prices in India.

The Gold Price in India Continues to Elevate Over the Last Three Years

Gold prices have continued to rally over the last three years, rising to INR 1,01,080 in June 2025 from INR 50,730 in June 2022. The prices have doubled in just three years, reflecting strong belief among Indians in the yellow metal. Gold prices, which were hovering around INR 54,610 in December 2022, reached INR 63,020 in December 2023, registering a 15.4% annual growth. Gold achieved a new peak in the first half of 2024 by hitting INR 79,230 in October before closing the year at INR 75,830. The growth witnessed during the year stood at a remarkable 20.3%.

Silver Prices Rose Even More Sharply Over the Last Three Years

Silver prices surged by a mammoth 86% (approx.) to touch INR 1,12,000 in June 2025 from INR 59,080 in June 2022. While there was a modest 7.7% price hike from December 2022 (INR 68,030) to December 2023 (INR 73,270), the prices surged by 16.90% to touch INR 85,670 in December 2024. We are only halfway through 2025, and the prices have grown at a remarkable 23% (approx.).

Whats the Reason Behind the Sustained Rally in Gold and Silver Prices in India?

Multiple factors have contributed to a sharp rise in gold prices in India. The same has played a part in silver prices across the country. Weakening rupee, geopolitical crisis, and industry-led demand growth are some reasons.

Constant Rupee Depreciation

Gold and silver prices have risen mostly due to the weakening rupee. It has depreciated to INR 86 per US dollar from INR 79 per US dollar in 2023. Rupee depreciation meant constant price inflation hikes across India, which imports almost all of its gold and silver requirements. Even though global gold prices remain constant, too much reliance on imports meant gold and silver prices kept climbing with time. At the same time, central banks worldwide have bought over 1,000 tonnes of gold for the third consecutive time in 2024, as per the World Gold Council report. Following other central banks, the Reserve Bank of India (RBI) also added to its gold reserves, raising institutional demand and restricting global supply.

Uncertain Geopolitical Climate Makes Gold a Safe Haven for Investors

The ongoing geopolitical crisis such as the conflict between Russia-Ukraine and Iran-Israel makes investors worried about the global economic environment, making them switch to gold as a hedging mechanism.

Industrial Growth Raises Demand for Silver

Around two-thirds of silver globally is used across industries such as touchscreen displays, photovoltaics (solar panels), semiconductors, batteries, and water purification. The solar PV sector, for instance, is witnessing a 12% annual growth, raising demand for silver, particularly in Asia.

Conclusion

Its remarkable to see the constant rise in gold prices in India. The upcoming festive season may raise the demand for the yellow metal. While silver prices will rise gradually as the industrial demand kicks in. For more updates, follow WikiFX, a one-stop destination to know everything about the forex brokers.