Gold, silver rally in 2025 amid global uncertainty | Mumbai News

MUMBAI: What began as a cautious drift toward safe assets has, over the course of 2025, become one of the most emphatic rallies the bullion market has seen in years. Gold and silver, propelled by a confluence of global uncertainty and domestic demand, have climbed steadily through the year — reaching record or near-record levels by December.In its annual review released this week, the All India Gem & Jewellery Domestic Council (GJC) traced this surge to a world that feels increasingly unsettled. Geopolitical tensions, war-like situations in parts of the globe, and a visible slowdown across major economies have pushed investors toward instruments that promise stability rather than growth. Gold, the oldest of safe havens, has once again become the refuge of choice.That shift has been reinforced by expectations that the United States Federal Reserve may begin cutting interest rates in the months ahead. Lower rates tend to make non-interest-bearing assets more attractive, and gold has benefited almost immediately from this change in sentiment. The weakening of the US dollar has further added to the momentum, lifting international prices and, by extension, domestic valuations.Reflecting on the year, GJC Chairman Rajesh Rokde described 2025 as a reaffirmation of the role precious metals play in both economic and cultural life.“The bullion market in 2025 has been a clear reminder that precious metals are strategic assets, not speculative instruments,” he said.“Gold’s historic rise is a direct reflection of global uncertainty and, more importantly, the unwavering trust that Indian households and investors place in it as a store of value across generations. Silver has decisively evolved beyond tradition — emerging as a critical metal powering the future through renewable energy, solar applications, and electric mobility, while retaining its cultural and jewellery relevance. This year has firmly established that gold and silver are not just commodities traded on screens, but enduring pillars of economic stability, cultural heritage, and India’s journey toward technological and sustainable growth.”Vice Chairman Avinash Gupta echoed the sense that opportunity now lies in understanding, not simply participating. “As we look toward 2026, the industry must prepare for a more complex environment,” he said.“Volatility will be part of the journey, yet the underlying drivers — from central bank accumulation to industrial demand — remain intact. For jewellers, investors, and consumers alike, the opportunity lies in understanding these dynamics and positioning wisely. Precious metals will continue to safeguard wealth, but they will also increasingly power the technologies of tomorrow. The GJC will stand alongside the trade, ensuring that our community adapts and thrives in this evolving landscape.”Behind the scenes, central banks have also been quietly reshaping the market. Countries such as China, Turkey, and India have increased the share of gold in their foreign exchange reserves — not as a short-term trade, but as a long-term hedge. Their steady accumulation has lent structural strength to the bullish trend.Silver’s story has been slightly different — and arguably more modern. Once viewed largely through the lens of jewellery and ornamentation, silver has increasingly found itself at the heart of the clean-energy transition. Its use in solar panels, electric vehicles, and advanced batteries has risen sharply, transforming it from a traditional precious metal into a strategic industrial resource. This dual identity — cultural and technological — has given silver a fresh relevance and a powerful new demand base.India’s own contribution to the rally has been unmistakable. Strong physical buying during the festive and wedding seasons has supported prices, as households continue to treat gold and silver not only as adornment, but as security. In times of uncertainty, the instinct to convert savings into tangible wealth remains deeply embedded.Looking ahead to 2026, GJC expects many of these forces to remain in place. Global uncertainty has not receded. Rate cuts remain likely. The dollar remains under pressure. Central banks continue to buy. And industrial demand for silver shows no sign of slowing. Together, these elements point toward a market that may be volatile, but fundamentally strong.