Gold prices extended their record-setting rally on February 25, with domestic futures crossing the Rs 1.60 lakh mark on MCX, tracking firm global cues and rising geopolitical tensions. Silver too surged nearly 2 percent, supported by strong industrial demand and safe-haven buying.
On the Multi Commodity Exchange (MCX), gold futures were trading at Rs 1,60,561 per 10 grams of 24-carat purity in the morning session, up 0.37 percent from the previous close. The contract had earlier touched Rs 1,60,794, marking a 0.52 percent gain at the open. Silver climbed 1.97 percent to Rs 2,76,998 per kilogram, after hitting an intraday high of Rs 2,77,509.
Global cues remained supportive. Spot gold on Comex hovered around $5,204 per ounce, up 0.54 percent over the past 24 hours, while silver rose to $89.59 per ounce, gaining more than 2 percent. A firmer dollar and persistent geopolitical risks continued to drive safe-haven flows into bullion.
Analysts say gold’s rally is part of a broader structural repricing rather than a short-term spike. They point out weakening trust in global monetary systems, rising fiscal stress, tightening physical supply and a shift in reserve management strategies by central banks.
Gold’s role as non-sovereign money has gained prominence as questions intensify over monetary independence worldwide, leading to a sustained shift in demand.
Silver is likely to remain firm in 2026 as industrial and investment demand converge. Rapid digitalisation, AI expansion and growth in data centres and IT infrastructure are boosting demand for silver-intensive electrical systems.
At the same time, tight supply conditions, US trade policy uncertainty and geopolitical instability are underpinning silver’s safe-haven appeal. Analysts also note that continued strength in gold could cushion downside risks for silver, although near-term volatility may remain elevated.