Due to festivals like Gudhi Padwa, Navratri, and Ramadan Eid occurring together, there is considerable excitement in the gold and silver market. On March 28, gold prices in the global market reached record heights, between $3,077 and $3,078 for the second consecutive day. Continuing the upward trend, gold rose ₹1,100 on March 28 to reach a new peak of ₹92,150 per 10 grams in the Delhi Sarafa market. The surge in gold prices is driven by fears of the impact of global trade wars on economic growth.
Silver also saw a significant increase, rising by ₹1,300 to nearly ₹1,03,000 per kilogram, approaching its record high. On March 19, silver hit a new peak of ₹1,03,500 per kilogram. Experts are excited about the surge in gold prices right before the festivals, anticipating increased purchases. However, the rise in prices has affected the demand for jewelry, while investment demand for gold is on the rise. Experts suggest that the demand is particularly strong for gold ETFs and coins.
Gold and Silver Returns: On January 1, 2024, the price of 24-carat gold on MCX (Multi Commodity Exchange of India) was ₹63,288 per 10 grams. By December 2024, it closed at ₹76,150, providing a solid 20% return to investors. As for silver, on January 1, 2025, the price of silver on MCX was ₹76,260 per kilogram. By December 30, 2025, silver closed at ₹87,531 per kilogram, offering an 18% return to investors.
At the domestic level, the demand for jewelry has dropped by 5%, while the net inflow into gold ETFs has been steadily increasing. According to the Association of Mutual Funds in India (AMFI), the net inflow into gold ETFs in February 2025 was ₹1,979.84 crore, compared to ₹997.22 crore in February 2024, showing a 99% year-on-year increase in gold ETF inflows.