Kolkata: Gold and silver prices scaled fresh highs on Wednesday, driven by robust demand and a weakening US dollar amid persistent geopolitical tensions. While gold prices increased ₹5,000 per 10 grams at the retail end to touch ₹1.63 lakh, silver prices surged to ₹3.61 lakh per kg from ₹3.44 lakh per kg a day ago. MCX gold prices rose to ₹1,62,387 per 10 gm, while silver rallied more than 6% to ₹3,78,401 per kg.
"The continuous rally in prices is driving high-net-worth individuals to buy gold," said Sachin Jain, regional CEO, India, World Gold Council. "Gold has been giving good returns compared to many other asset classes and ideally people should allocate 15% of their overall portfolio to the yellow metal."
Jateen Trivedi, vice president and research analyst-commodity and currency at LKP Securities, said, "The rally in precious metals is driven by heightened volatility ahead of the first Fed policy of 2026 and anticipation around the Fed's statement. Additionally, President Trump's upcoming speech is expected to influence market sentiment, keeping volatility elevated."
On the outlook on silver prices, he said, "Technically, silver faces immediate resistance near ₹3,75,000 per kg, while there is strong support around ₹3,40,000 per kg in the near term."
Rapidly rising prices of the precious metals have prompted traders to seek approval to offer equated monthly instalment (EMI) options for gold purchase.
"With gold prices expected to remain elevated, initiatives such as regulated small-ticket EMI options for gold jewellery and a review of the current 3% goods and services tax (GST) structure can meaningfully ease consumer burden and higher participation in the formal market," said Suvankar Sen, managing director, Senco Gold & Diamonds.
Meanwhile, traders said that the India-European Union free trade agreement will help increase the flow of precious metals between India and the EU.
"This will stabilise supply chains, enhance liquidity in bullion markets and allow jewellers to access raw materials at competitive rates," said Rajesh Rokde, chairman, All India Gem & Jewellery Domestic Council. "Consumers will benefit from better pricing and greater product variety, while traders and investors will gain confidence in a more robust and predictable market environment."
"The continuous rally in prices is driving high-net-worth individuals to buy gold," said Sachin Jain, regional CEO, India, World Gold Council. "Gold has been giving good returns compared to many other asset classes and ideally people should allocate 15% of their overall portfolio to the yellow metal."
Jateen Trivedi, vice president and research analyst-commodity and currency at LKP Securities, said, "The rally in precious metals is driven by heightened volatility ahead of the first Fed policy of 2026 and anticipation around the Fed's statement. Additionally, President Trump's upcoming speech is expected to influence market sentiment, keeping volatility elevated."
On the outlook on silver prices, he said, "Technically, silver faces immediate resistance near ₹3,75,000 per kg, while there is strong support around ₹3,40,000 per kg in the near term."
Rapidly rising prices of the precious metals have prompted traders to seek approval to offer equated monthly instalment (EMI) options for gold purchase.
"With gold prices expected to remain elevated, initiatives such as regulated small-ticket EMI options for gold jewellery and a review of the current 3% goods and services tax (GST) structure can meaningfully ease consumer burden and higher participation in the formal market," said Suvankar Sen, managing director, Senco Gold & Diamonds.
Meanwhile, traders said that the India-European Union free trade agreement will help increase the flow of precious metals between India and the EU.
"This will stabilise supply chains, enhance liquidity in bullion markets and allow jewellers to access raw materials at competitive rates," said Rajesh Rokde, chairman, All India Gem & Jewellery Domestic Council. "Consumers will benefit from better pricing and greater product variety, while traders and investors will gain confidence in a more robust and predictable market environment."