Gold and Silver Rally Over 30% in 2025 as Investors Flock to Safe Havens
- 2nd September 2025
- 01:00:00 PM
- 3 min read
Summary
Gold and silver prices have rallied over 30% in 2025, hitting record highs in both international and Indian markets. The surge is driven by a weaker dollar, central bank buying, and industrial demand. Sandip Raichura, CEO of PL Capital, says gold could head towards $3,700 while silver targets $42–$48 in the medium term, reinforcing bullion’s safe-haven appeal.
Mumbai | September 2 – Gold and silver prices have surged more than 30% this year, cementing their status as the world’s most sought-after safe-haven assets. The rally comes as geopolitical tensions, currency volatility and fresh tariff disputes trigger a risk-off sentiment among global investors.
On international exchanges, gold has risen 32% year-to-date to trade above $3,500 an ounce, its highest on record. Silver has outpaced gold, climbing more than 40% to $40 an ounce, a level last seen in 2011.
In India, gold prices have advanced 34% in 2025, trading between ₹1,02,000 and ₹1,05,000 per 10 grams. Silver has gained over 42%, touching ₹1,23,000 per kg in the domestic spot market.
The surge reflects a mix of factors — a weaker dollar, record central bank buying, and growing concerns over inflation. Bond yields in the UK and Europe have climbed to multi-decade highs as governments grapple with rising debt, adding to expectations that inflationary pressures will persist.
Sandip Raichura, Executive Director, CEO Retail and Distribution, said the case for bullion remains strong.
“We have continued our bullish stance on gold for more than two years, driven by the weakening US dollar and the rising dedollarisation trend, especially post the incumbent US president taking charge. Recent tariff actions against India and Brazil could further pressure the dollar, which is commodity positive, particularly for gold. We believe gold will emerge stronger from the current turmoil and head towards $3,700 in the medium term. Silver has also broken past key resistance at $34, and we expect it to move towards $42 and then $48 in the medium term,” Raichura noted.
Gold’s performance has been reinforced by central bank demand, with global institutions on track to add around 1,000 tonnes to their reserves in 2025. According to the World Gold Council, gold is now the second-largest reserve asset after the dollar, whose share of global currency reserves has fallen to a record low of 47%.
Silver’s gains have been supported by industrial demand from solar panels and electric vehicles, deepening its role in the energy transition. Analysts say this structural shift will keep silver prices elevated over the medium term.
With bullion continuing to outperform equities and bonds, market watchers see gold and silver retaining their appeal. For investors, the advice is clear: while the rally justifies caution on chasing peaks, staggered accumulation remains a viable strategy in an environment of uncertainty.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
